Company Number: SC760390

Analysis Date: 2025-07-29 12:26 UTC

1. Risk Rating: MEDIUM
   The company is newly incorporated (less than 1.5 years) and has filed accounts on time with no overdue returns, indicating compliance. However, net assets are modest (£4,634) relative to current and long-term liabilities, and deferred tax provisions indicate some complexity in tax matters. The limited operating history and small equity base suggest moderate risk from a solvency and liquidity perspective at this stage.

2. Key Concerns:

• Modest net asset position (£4,634) combined with significant long-term hire purchase liabilities (£25,816) and provisions for deferred tax (£8,256) could pressure solvency if cash flows do not materialize as expected.
• The company operates with a sole director/shareholder, which may concentrate control and decision-making risk.
• The business is in the “Other construction installation” SIC code, an industry often sensitive to economic cycles and cash flow timing; limited operating history means no proven track record of operational stability.

3. Positive Indicators:

• All statutory filings are up-to-date with no overdue accounts or confirmation statements, reflecting good regulatory compliance.
• Positive net current assets (£5,683) and some cash reserves (£12,741) suggest short-term liquidity is currently sufficient to meet immediate obligations.
• The director affirms going concern status, and the company holds tangible fixed assets (£33,023), indicating some capital investment in operational capacity.

4. Due Diligence Notes:

• Review the company’s detailed cash flow and profit and loss statements (not filed publicly yet) to evaluate revenue generation and operating margins.
• Investigate the nature and terms of hire purchase contracts to assess repayment schedules and potential refinancing risks.
• Clarify the deferred tax provision drivers and assess any pending tax liabilities or exposures that may impact future cash flows.
• Explore the director’s experience and capacity given the single-person management structure and its impact on governance and operational continuity.
• Monitor subsequent filings for signs of growth or deterioration in financial metrics as the company matures beyond initial startup phase.