Company Number: SC772967

Analysis Date: 2025-07-20 13:38 UTC

1. Risk Rating: HIGH
   The company's net liabilities position (£-748) and net current liabilities (£-5,877) indicate an immediate solvency risk. The creditor balance owed to directors (£12,998) further highlights reliance on related party financing, which may not be sustainable. The company is in its first year of operation with minimal assets and negative equity, signaling financial fragility.

2. Key Concerns:

• Negative Net Assets and Working Capital Deficit: The company’s total liabilities exceed assets by £748, with current liabilities surpassing current assets by £5,877, raising concerns about its ability to meet short-term obligations.
• Related Party Debt: A significant portion of liabilities (£12,998) is owed to the director, indicating dependency on director funding rather than external financing or operating cash flows.
• Early Stage Without Profit & Loss Details: Being newly incorporated (June 2023) and filing only micro-entity accounts with no profit and loss statement included limits visibility on operational performance and sustainability.

3. Positive Indicators:

• Compliance with Filing Deadlines: The company has filed accounts and confirmation statements on time, indicating good regulatory compliance so far.
• Clear Ownership and Control: Single director and 75-100% ownership by Dr. Rebecca Mary Salmon provides clarity on control and decision-making.
• Industry Focus: The company operates in specialized medical and physical well-being services, sectors which may have growth potential post-pandemic.

4. Due Diligence Notes:

• Investigate the nature and terms of the director’s loan (£12,998) to assess risk of repayment and potential impact on liquidity.
• Request detailed management accounts or cash flow forecasts to evaluate operational viability and plans for addressing the working capital deficit.
• Clarify the absence of profit and loss information and inquire about revenues, expenses, and break-even status since incorporation.
• Review any contingent liabilities or off-balance sheet commitments that might exacerbate financial risk.
• Confirm if the company has any external funding or plans to raise capital to support ongoing operations.