Company Number: SC746572

Analysis Date: 2025-07-20 14:00 UTC

1. Risk Rating: MEDIUM
   The company is newly incorporated (October 2022) and active, with no overdue filings, which is positive. However, its net current liabilities position (£-2,488) indicates slight working capital deficiency, and current liabilities exceed current assets primarily due to significant VAT and tax obligations. The modest cash balance relative to liabilities suggests potential liquidity constraints. Given the limited trading history and the company's small scale, the risk is medium.

2. Key Concerns:

• Liquidity Strain: Current liabilities (£112,441) exceed current assets (£109,953), with a net current liability of £2,488, indicating potential short-term liquidity pressure. Large VAT (£89,702) and tax liabilities may exacerbate cash flow challenges.
• Limited Operating History: Incorporated less than two years ago, the company lacks a long track record to demonstrate operational stability or resilience.
• Concentration of Control: Single director and 75-100% shareholder control by one individual increases governance risk and reliance on one person’s management and financial support.

3. Positive Indicators:

• No Overdue Filings: Both accounts and confirmation statements are filed on time, indicating good regulatory compliance and governance discipline.
• Positive Shareholders’ Funds: Net assets of £33,512 and retained earnings of £33,412 suggest the company is currently solvent on a balance sheet basis.
• Cash Availability: Cash balance of £103,953 is relatively high compared to total current assets, implying cash management is underway.

4. Due Diligence Notes:

• Review cash flow statements or bank statements to confirm liquidity sufficiency and timing of VAT/tax payments.
• Investigate turnover and profitability trends since inception to assess operational sustainability and growth prospects.
• Confirm any contingent liabilities or off-balance sheet obligations not reflected in the accounts.
• Assess director’s background and any related party transactions given sole control.
• Verify the reason for significant VAT creditor balance and whether it relates to any deferred payments or disputes.