Company Number: SC698760

Analysis Date: 2025-07-29 19:03 UTC

1. Risk Rating: HIGH

Justification: The company consistently shows negative net assets and net current assets over multiple years, indicating persistent insolvency issues. Current liabilities exceed current assets by a significant margin, and the company holds minimal fixed assets. There is also negligible share capital and only one employee, suggesting limited operational scale and financial buffer.

2. Key Concerns:

• Persistent negative net liabilities (£-2,329 as of 2024), indicating the company owes more than it owns, raising serious solvency risks.
• Negative working capital (net current liabilities of approximately £-2,682), which suggests difficulty in meeting short-term obligations.
• Minimal cash or current assets (negative £6) and low fixed assets (£884) imply extremely limited liquidity and asset backing to support ongoing operations.

3. Positive Indicators:

• The company is current with its statutory filings and accounts, with no overdue returns or accounts, reflecting compliance with regulatory requirements.
• The director is a single individual with full control and has been consistent since incorporation, possibly indicating stable governance at the management level.
• The company operates in the construction sector with relevant SIC codes, which can be a viable market if operational challenges are addressed.

4. Due Diligence Notes:

• Investigate the reasons behind the persistent losses and negative equity; review management accounts and cash flow forecasts to assess viability.
• Clarify the nature and terms of current liabilities to understand if they include related party debts, trade creditors, or other financial obligations.
• Assess the company's revenue streams, client contracts, and pipeline to determine operational sustainability and potential turnaround plans.
• Confirm the company's ability to access additional capital or financial support from the sole shareholder or external sources.