Company Number: SC784077

Analysis Date: 2025-07-20 18:06 UTC

1. Risk Rating: HIGH
   The company shows a negative net asset position (£-707) due to creditors falling due after more than one year (£3,205) exceeding current assets. This indicates potential solvency concerns despite being a newly incorporated micro-entity with minimal operational history.

2. Key Concerns:

• Negative Net Assets: The balance sheet reveals net liabilities of £707, suggesting the company’s liabilities exceed its assets. This is a red flag for solvency and financial stability.
• Long-term Creditors: The presence of £3,205 creditors due after one year without offsetting fixed assets or adequate current assets raises questions about the company’s ability to meet long-term obligations.
• No Operational Activity or Employees: The company reports zero fixed assets, minimal current assets (£2,497), and no employees, suggesting limited or no operational activity to generate revenue or cash flow.

3. Positive Indicators:

• Compliance with Filing Requirements: The company is up to date with both accounts and confirmation statement filings, indicating good regulatory compliance and governance practices.
• Clear Ownership Structure: A single controlling person with 75-100% ownership provides straightforward governance and accountability.
• Newly Incorporated: Being newly formed (incorporated September 2023) means limited historical operational or financial data, which may explain the limited activity and resources.

4. Due Diligence Notes:

• Investigate the nature and terms of the £3,205 long-term creditors to understand if these represent shareholder loans, vendor credit, or other liabilities.
• Clarify the business model and plans for generating revenue, given the absence of fixed assets and employees.
• Review cash flow projections and any funding arrangements to assess liquidity prospects.
• Confirm the relationship between the director (also secretary) and creditors to rule out related party transactions that could affect financial stability.
• Monitor future filings for evidence of operational progress and improved financial position.