WGWG INVESTMENTS LIMITED

Executive Summary

WGWG Investments Limited is a newly formed company with a weak financial base, negative net assets, and reliance on related-party loans. Its lack of operating cash flow and tangible assets undermines its ability to service debt independently. Credit approval is not recommended at this time; progress should be monitored through cash flow improvement and equity strengthening.

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Company Analysis

This analysis is opinion only and should not be interpreted as financial advice.

WGWG INVESTMENTS LIMITED - Analysis Report

Company Number: 14671067

Analysis Date: 2025-07-29 18:03 UTC

  1. Credit Opinion: DECLINE
    WGWG Investments Limited is a recently incorporated entity (February 2023) operating in the real estate letting sector. Its first-year financials show net current liabilities and negative shareholders’ funds, indicating a weak capital base and potential liquidity challenges. The company relies on related-party loans repayable on demand, which adds risk. No operating profits or cash flow generation are evident yet. Given these factors and the absence of a trading history or strong asset backing, the company currently lacks the financial resilience and independent cash flow capacity to service external credit facilities.

  2. Financial Strength:
    The balance sheet as of 28 February 2024 reports current assets of £104,836 (primarily £93,001 in related-party debtors and £11,835 cash) against current liabilities of £106,000, resulting in net current liabilities of £1,164. Shareholders funds are negative at £1,264 due to accumulated losses or startup costs. The company holds no fixed assets, which limits collateral value. The prominence of intercompany balances inflates receivables but these are not guaranteed external cash inflows. Overall, the financial position is fragile with minimal capital and no tangible asset base.

  3. Cash Flow Assessment:
    Cash on hand is modest at £11,835, insufficient to cover the total current liabilities of £106,000. The large debtor balance owed by related parties is interest-free and repayable on demand, but its collectability depends on the financial health of the related entities. There is no indication of operating cash inflows, and the company has no employees, suggesting it may not yet be trading or generating revenue independently. Working capital is negative, implying reliance on additional funding or shareholder support for ongoing operations.

  4. Monitoring Points:

  • Cash flow generation from operations or related-party repayments.
  • Changes in net current assets and shareholders funds over time.
  • Development of fixed assets or acquisition of income-generating properties.
  • Any new external debt facilities or equity injections.
  • Director’s strategy for achieving profitability and liquidity.

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