Company Number: SC697630

Analysis Date: 2025-07-29 18:46 UTC

1. Risk Rating: HIGH
   The company shows persistent negative net assets and net current liabilities, indicating a weak financial position with solvency concerns. Its status as a micro-entity with minimal turnover and reliance on a single director further amplifies risk.

2. Key Concerns:

• Negative Net Assets and Net Current Assets: For each reported year, net current assets are negative (e.g., -£5,336 in 2024), and net assets are also negative, signaling liabilities exceed assets and raising solvency risk.
• Dependence on Director Support: The directors’ report explicitly states the going concern status depends on ongoing support from the sole director, which implies the company is not self-sustaining financially.
• Minimal Share Capital and No Employees: Share capital is only £1, and the company had zero employees during the latest year, suggesting very limited operational scale and possible undercapitalization.

3. Positive Indicators:

• No Overdue Filings: Both accounts and confirmation statements are filed on time, indicating regulatory compliance and good governance in terms of company secretarial duties.
• Active Status with Clear Ownership: The company is active with a clear 75-100% ownership by the director, which may facilitate swift decision-making.
• Consistent Current Assets Level: Current assets have increased slightly over the years (£5,323 in 2021 to £12,446 in 2024), which may reflect some operational activity or asset accumulation.

4. Due Diligence Notes:

• Examine Cash Flow and Funding Arrangements: Investigate how the company meets short-term liabilities given persistent negative net current assets and the nature of director support (loans, capital injections).
• Review Profit and Loss Statements: Confirm turnover, margins, and operational cash generation to assess sustainability beyond balance sheet data.
• Assess Director’s Capacity and Intent: Given reliance on a single individual, assess the director’s financial capacity and commitment to continue support and potential business plans.
• Investigate Underlying Business Model: Understand the scale and sustainability of retail and manufacturing activities under SIC codes 47910 and 32990 in context of no employees and micro-entity reporting.