Company Number: SC712210

Analysis Date: 2025-07-29 18:02 UTC

1. Risk Rating: HIGH
   The company shows a negative net asset position (£-1,498) with substantial current liabilities (£188,800) far exceeding current assets (£63,344), resulting in a negative working capital of £-91,913. This indicates significant solvency and liquidity risk.

2. Key Concerns:

• Liquidity Shortfall: Current liabilities are nearly three times current assets, with minimal cash (£4,510), signaling potential cash flow challenges meeting short-term obligations.
• Negative Net Assets: The company’s net liabilities position suggests insolvency on a balance sheet basis, raising concerns about financial stability and creditor risk.
• No Employees and Limited Operating History: Incorporated in late 2021 with no employees reported, the operational scale is minimal, which may affect revenue generation and sustainability.

3. Positive Indicators:

• Tangible Fixed Assets: The company holds fixed assets valued at £279,215, which may provide collateral value or operational capacity.
• No Overdue Filings: Accounts and confirmation statements are filed timely, indicating compliance with regulatory requirements.
• Established Directors and PSCs: Three directors and three persons with significant control are identified, showing clear governance structure and ownership transparency.

4. Due Diligence Notes:

• Investigate the nature and liquidity of tangible fixed assets and whether they can be leveraged or sold to improve cash position.
• Review the company's business model and revenue streams given the lack of employees and negative working capital.
• Confirm whether any contingent liabilities or off-balance-sheet debts exist that may exacerbate financial risk.
• Assess the company’s plans or strategies to address the negative equity and liquidity shortfall.
• Verify director backgrounds for any adverse records, though none are indicated here.