WINGS AND PAWS SHOP LTD

Executive Summary

Wings And Paws Shop Ltd demonstrates a low risk profile with adequate liquidity and consistent compliance, despite a gradual decline in net assets and concentrated control by a single director. The company’s small scale and limited financial resources suggest monitoring trends in profitability and governance is advisable to ensure continued operational stability.

WINGS AND PAWS SHOP LTD - Analysis Report

Company Number: 12854663

Analysis Date: 2025-07-29 20:22 UTC

1. Risk Rating: LOW
   Wings And Paws Shop Ltd exhibits a stable financial position with positive net current assets and no overdue filings. The company maintains sufficient liquidity to meet short-term obligations, and there is no indication of insolvency or regulatory non-compliance.

2. Key Concerns:

• Declining Net Assets: Net assets decreased from £11,059 in 2020 to £4,173 in 2024, indicating a downward trend that warrants monitoring for sustainability.
• Limited Scale and Resources: Operating as a private company limited by guarantee with no share capital and only two employees, the company’s operational scale is small, which may impact resilience to market fluctuations.
• Concentration of Control: Significant control and directorship rest with a single individual, Mrs. Clare Louise Vowles, which could present governance risks due to limited oversight.

3. Positive Indicators:

• Consistent Compliance: The company’s accounts and confirmation statements are filed on time with no overdue status, reflecting sound governance and regulatory adherence.
• Adequate Liquidity: Cash balances remain positive (£6,526 in 2024), exceeding current liabilities (£2,775), suggesting the company can meet immediate financial obligations.
• Stable Operational Footprint: The business has maintained steady employee numbers and consistent debtor levels, indicating operational stability in its niche retail sector.

4. Due Diligence Notes:

• Review Financial Trend Details: Investigate causes behind the reduction in net assets over recent years to assess profitability and cash flow sustainability.
• Examine Governance Structure: Evaluate the implications of concentrated control by one director, including any potential succession plans or risk mitigation measures.
• Assess Business Model Viability: Given the company’s small scale and specific retail classification (second-hand goods), further understanding of revenue streams, competitive environment, and market position would be prudent.