WRX LIMITED

Risk Rating: HIGH The company is currently in Liquidation and has a prolonged history of negative equity and severe liquidity constraints. As of the last filed accounts (March 2018), the company was technically insolvent, with total liabilities exceeding total assets by over £4,000, and held negligible cash reserves of just £103. The ongoing liquidation status and overdue statutory filings confirm that this entity is non-operational and poses an extreme risk to any potential creditor or investor.

Key Concerns: * Insolvency and Liquidation Status: The company's status is officially listed as "Liquidation," meaning it is undergoing a formal closure process. The financial history demonstrates sustained negative net assets dating back to at least 2013, indicating that the business model was unsustainable and the company was balance-sheet insolvent long before the filing of the most recent accounts. * Severe Liquidity Deficiency: As of 31 March 2018, the company held only £103 in cash against current liabilities of £51,990. Net current liabilities stood at £(4,231). Without external intervention or the realization of debtors, the company had no capacity to meet its short-term obligations. * Director Loan Recoverability: The largest single asset on the balance sheet is "Other debtors" (£47,656), of which £35,967 is a loan from the company to the director, S U Alam. In a liquidation scenario, recovering unsecured director loans is notoriously difficult and frequently subject to conflicts of interest. The reliance on this single asset to satisfy creditors represents a material uncertainty and risk of significant further shortfall.

Positive Indicators: * Longevity: The company was incorporated in April 2000, meaning it operated for nearly two decades before entering liquidation, though a significant portion of this time was spent in a state of negative equity. * Arm's Length Terms on Director Loan: The filed accounts note that the director's loan was charged interest at arm's length and is repayable on demand, which suggests some formal structuring of the advance, though this does little to mitigate the recoverability risk in liquidation.

Due Diligence Notes: * Liquidation Details: Investigate the specific type of liquidation (e.g., Members' Voluntary Liquidation vs. Creditors' Voluntary Liquidation) and the identity of the appointed liquidator to understand the likely timeline and expected returns to creditors. * Taxation Liability: The largest creditor is "Taxation and social security" at £36,485. Further investigation is required to determine if this relates to overdue VAT, Corporation Tax, or PAYE, and whether HMRC has registered a priority charge over the company's assets. * Statutory Compliance: Both the annual accounts and the confirmation statement are significantly overdue. Confirm whether the liquidator has assumed responsibility for filing these documents or if penalties are accruing. * Registered Office Discrepancy: The current registered office is listed as "C/O Expedium Limited," which suggests the use of a corporate services or insolvency practitioner's address, whereas the 2018 accounts list a residential address in Pinner. This shift typically corresponds with the onset of formal insolvency proceedings.