Company Number: SC759323

Analysis Date: 2025-07-29 18:12 UTC

1. Risk Rating: HIGH
   The company shows negative net current assets and shareholders' funds, indicating insolvency risk. The company is newly formed with a loss recorded in its first accounting period, and liabilities exceed assets.

2. Key Concerns:

• Negative net current assets (£-236) and shareholders' funds (£-236) suggest the company may struggle to meet short-term obligations.
• Retained earnings deficit (£-336) in the first year indicates the company is operating at a loss and is not yet profitable.
• Directors' current accounts of £236 as short-term liabilities imply reliance on director funding rather than external finance, which may not be sustainable.

3. Positive Indicators:

• The company is active, with no overdue filings for accounts or confirmation statements, demonstrating regulatory compliance and good governance to date.
• The business is a private limited company with two directors and a clear ownership structure, which may facilitate decision making and control.
• The company operates in real estate letting (SIC 68209), a sector with potential for stable income once operational.

4. Due Diligence Notes:

• Investigate the nature and terms of the directors' current accounts liabilities to assess financial support stability.
• Review business plan and cash flow forecasts to understand how the company intends to overcome initial losses and achieve profitability.
• Confirm if any off-balance-sheet liabilities or contingent liabilities exist that could affect solvency.
• Assess the experience and background of the directors in the real estate letting sector.
• Monitor subsequent filings for improvement or deterioration in financial position.