Company Number: SC721406

Analysis Date: 2025-07-29 16:36 UTC

1. Risk Rating: HIGH
   AGR Plant Ltd exhibits significant financial distress, as evidenced by persistent negative net current assets and shareholders’ funds that have deteriorated markedly from -£3,487 in 2023 to -£10,115 in 2024. This indicates a high risk that the company may struggle to meet its short-term and long-term obligations.

2. Key Concerns:

• Severe liquidity shortfall: Current liabilities (£28,470) far exceed current assets (£594), resulting in a net current liability position of £27,876, which points to acute cash flow and working capital issues.
• Negative equity position: Shareholders’ funds and total net assets are deeply negative and worsening year-on-year, suggesting accumulated losses and potential insolvency risk.
• Limited financial transparency and audit exemption: The company filed micro-entity accounts that are unaudited, limiting external assurance on the accuracy of financials and potentially masking operational or financial risks.

3. Positive Indicators:

• No overdue filings: The company is current with its annual accounts and confirmation statement filings, indicating compliance with Companies House deadlines and regulatory requirements.
• Experienced control: The principal shareholder and director, Mr Alexander Bruce Scott, holds significant control (75-100% shares and voting rights), potentially ensuring decisive governance and strategic direction.
• Established operational base: The company maintains a consistent registered office and director appointments since incorporation in 2022, suggesting operational continuity.

4. Due Diligence Notes:

• Investigate the causes behind the large and increasing net current liabilities, including unpaid creditors, loans, or other contingent liabilities.
• Review cash flow forecasts and financial plans to assess whether the company has a viable strategy to restore liquidity and solvency.
• Clarify the nature and terms of any related party transactions or director loans that may impact financial stability.
• Examine management accounts or internal reports for more current financial information beyond the year-end statements.
• Confirm the operational status and revenue streams of the business to verify sustainability given the financial distress.
• Assess any contingent liabilities or off-balance-sheet commitments not reflected in the filed accounts.