Company Number: SC725452

Analysis Date: 2025-07-29 17:37 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency issues, with net liabilities of £3,410 as of the latest accounts. Current liabilities exceed current assets, indicating cash flow and liquidity problems. The absence of employees and reliance on micro-entity accounting further underscore operational limitations and potential sustainability concerns.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The company’s net liabilities (£3,410) suggest it is insolvent on a balance sheet basis, raising questions about its ability to meet obligations.
• Liquidity Shortfall: Current liabilities (£8,201) exceed current assets (£1,491), implying working capital deficiency and potential cash flow distress.
• Operational Inactivity: No employees and minimal fixed assets (£3,200) indicate limited business activity and question the company’s ongoing operational viability.

3. Positive Indicators:

• Compliance with Filings: Accounts and confirmation statements are up to date without overdue filings, demonstrating regulatory compliance.
• Change in Ownership and Management: Recent appointment of a new director and change of company name may indicate restructuring efforts or strategic repositioning.
• Micro-Entity Status: Exemption from audit reduces administrative burden, appropriate given the company’s size and scale.

4. Due Diligence Notes:

• Investigate the nature and source of the long-term creditors (£8,201) and repayment terms to assess solvency risk in detail.
• Clarify business model and revenue generation given absence of employees and minimal current assets.
• Review director background and any related party transactions, especially considering the ownership concentration and recent management changes.
• Confirm if there are any contingent liabilities or off-balance-sheet obligations not disclosed in the micro-entity accounts.