Company Number: 13253278

Analysis Date: 2025-07-29 14:16 UTC

1. Risk Rating: MEDIUM

Justification: WOTTOLINE UK LTD exhibits improving financial metrics with positive net current assets and shareholder funds growth over recent years, indicating developing solvency. However, the small scale, modest cash levels relative to liabilities, and concentration of control present moderate risk factors.

2. Key Concerns:

• Liquidity Pressure: Although net current assets are positive (£39,930 as of March 2024), cash on hand remains relatively low (£18,956) compared to current liabilities (£36,268), which could create short-term liquidity constraints.
• Concentrated Control and Governance Risk: A single individual (Xxxxxx Xxxxxxxxname shown to subscribers) holds 75-100% ownership, voting rights, and director appointment powers. This concentration may reduce governance oversight and increase operational risk.
• Limited Scale and Financial Transparency: The company is small with minimal share capital (£100) and small employee base (3). Its financial statements are unaudited and exempt under small companies regime, limiting external assurance on financial health.

3. Positive Indicators:

• Consistent Growth in Net Current Assets and Shareholders’ Funds: From £10,981 in 2023 to £39,930 in 2024, reflecting improved working capital and equity base.
• Timely Filing and Compliance: No overdue accounts or confirmation statements noted, demonstrating regulatory compliance.
• Clear Accounting Policies and Disclosure: Financial statements detail accounting policies and provide transparency on financial instruments and tax treatment.

4. Due Diligence Notes:

• Investigate the nature and collectability of trade debtors (£57,242) which represent a significant portion of current assets.
• Review cash flow statements or management accounts to assess operational cash generation and short-term liquidity.
• Understand the relationship and financial support from the parent company Wottoline SA, including intercompany transactions or guarantees.
• Assess governance arrangements given the high degree of control by a single PSC and three directors with similar nationality and location, for potential conflicts or related party transactions.
• Confirm business model sustainability given the SIC code “Other information service activities not elsewhere classified” and limited employee count.