WORKHOG LTD

Executive Summary

WORKHOG LTD is an early-stage micro-entity exhibiting significant financial stress with negative net assets and working capital as of June 2024. While regulatory compliance is maintained and the director expresses confidence in ongoing operations, the deteriorating balance sheet raises a high solvency and liquidity risk. Further investigation into cash flows, funding sources, and operational performance is recommended before considering investment.

WORKHOG LTD - Analysis Report

Company Number: 14151917

Analysis Date: 2025-07-29 14:42 UTC

1. Risk Rating: HIGH

The company exhibits significant solvency and liquidity concerns as of the latest financial year. The net current assets have turned negative (£-1,161), and net assets have deteriorated to a negative £-261, indicating that current liabilities exceed both current assets and total assets. This financial position suggests a material risk that the company may struggle to meet its short-term obligations without additional funding. Given the company’s micro-entity size and short operating history (incorporated 2022), the financial position is fragile.

2. Key Concerns:

• Negative Net Assets and Working Capital: The latest accounts show net assets and net current assets are negative, a red flag for solvency and liquidity.
• Rapid Deterioration Year-on-Year: There is a sharp decline in financial health from positive net assets of £87 (prior year) to a negative £261, suggesting increasing financial stress.
• Limited Operational Scale: With only one employee and micro-entity status, the company has minimal operational scale or diversification, increasing vulnerability to business risks.

3. Positive Indicators:

• No Overdue Filings: Both accounts and confirmation statement filings are up to date, demonstrating regulatory compliance and good governance in this respect.
• Director’s Confidence in Going Concern: The director asserts a reasonable expectation of the company’s ability to continue operations, citing good sales growth and profitability, though this is not yet reflected in the financial position.
• Single Controlling Shareholder/Director: Clear ownership and control by one individual may facilitate swift decision-making.

4. Due Diligence Notes:

• Review Cash Flow and Profitability Trends: Investigate underlying cash flow statements and profit & loss data (not currently disclosed) to assess operational viability and whether the negative net asset position is temporary.
• Assess Related Party Transactions: Given sole director/shareholder status, verify absence of related party debts or transactions that might distort liabilities.
• Examine Funding Sources: Determine whether the company has access to additional capital or credit facilities to cover short-term liabilities.
• Clarify Nature of Fixed Assets: The £900 fixed assets reported require clarification to understand their liquidity and valuation basis.
• Confirm Director’s Plans: Validate management’s plans and assumptions supporting the going concern basis stated in the accounts.

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