Company Number: SC705924

Analysis Date: 2025-07-20 16:40 UTC

1. Risk Rating: HIGH
   The company’s latest financial data shows a significant deterioration in net current assets and net assets, moving from positive £2,447 in 2022 to negative £4,393 in 2023. This indicates an erosion of working capital and overall net worth, raising concerns about solvency and liquidity.

2. Key Concerns:

• Negative Net Current Assets: Current liabilities (£18,311) exceed current assets (£11,310) by £7,001 as of August 2023, signaling potential short-term liquidity challenges.
• Decline in Net Assets: The drop from positive net assets of £2,447 in 2022 to negative £4,393 in 2023 suggests losses or increased liabilities that may threaten the company’s ability to meet long-term obligations.
• Limited Financial Scale and History: As a micro-entity incorporated in 2021, limited financial information and short operating history restrict comprehensive risk assessment, with only two years of comparative data available.

3. Positive Indicators:

• Filing Compliance: The company is up to date with both accounts and confirmation statement filings, indicating good regulatory compliance and governance practices.
• Stable Management: The sole director and majority shareholder, Allan Friel-Myles, has been in position since incorporation with no noted disqualifications or compliance issues.
• Consistent Employment: The company maintained an average of five employees over the last two years, suggesting operational continuity.

4. Due Diligence Notes:

• Investigate Causes of Asset Decline: Assess detailed financial statements or management accounts to understand drivers behind asset reduction and negative net current assets.
• Cash Flow Analysis: Review cash flow statements, if available, to evaluate the company’s ability to meet short-term obligations and operational expenses.
• Business Model Viability: Given the SIC code 56302 (public houses and bars), scrutinize the impact of external factors such as market conditions or regulatory changes on the company’s revenue and profitability.
• Director’s Financial Support: Clarify whether the director or shareholder has provided loans or guarantees to support the company’s finances.