Company Number: SC679683

Analysis Date: 2025-07-20 13:50 UTC

1. Risk Rating: MEDIUM

The company shows a recent deterioration in net current assets from a healthy £9,639 in 2022 to a marginal £181 in 2023, reflecting a near break-even working capital position. While net assets remain positive at £4,711, the sharp increase in current liabilities (from £2,731 to £33,360) raises concerns about short-term solvency and liquidity. The micro-entity status limits disclosure detail, constraining comprehensive analysis.

2. Key Concerns:

• Significant rise in current liabilities in 2023 without corresponding increases in current assets, potentially indicating cash flow stress or delayed payments.
• Decline in net assets and working capital compared to prior years, suggesting weakening financial resilience.
• Single director and single employee operation, which may heighten operational risk due to dependency on key individual.

3. Positive Indicators:

• Continued positive net asset position and shareholder funds, albeit reduced, indicating some retained equity buffer.
• Compliance with statutory filing requirements (accounts and confirmation statement filed on time), showing good regulatory adherence.
• Steady operation since incorporation in 2020 with consistent classification in IT consultancy, indicating business continuity.

4. Due Diligence Notes:

• Investigate the nature and maturity profile of the increased current liabilities to assess risk of default or need for refinancing.
• Review cash flow statements or bank statements (if available) for liquidity trends and operational cash generation capacity.
• Assess client base and contract stability given the company's small size and reliance on a single director/employee.
• Verify absence of director disqualifications or regulatory actions beyond public records.