Company Number: SC744512

Analysis Date: 2025-07-29 19:35 UTC

1. Risk Rating: LOW
   Architectural Services Scot Ltd demonstrates a solid financial position for a micro-entity with increasing net assets and positive working capital. The company is current with its statutory filings and shows no signs of distress or insolvency.

2. Key Concerns:

• Long-term liabilities: The company has non-current liabilities of £10,000, which, while not excessive, should be monitored relative to cash flows and asset coverage.
• Limited financial history: Incorporated in 2022, the company has a short trading history, limiting the ability to assess trends or resilience through economic cycles.
• Concentration of control: Ownership and control are concentrated between two directors and a corporate shareholder, which could pose governance risks if conflicts arise.

3. Positive Indicators:

• Strong liquidity position: Current assets (£71,084) significantly exceed current liabilities (£18,929), resulting in net current assets of £52,155, indicating good short-term financial health.
• Growing net assets: Shareholders’ funds have more than doubled from £20,571 in 2023 to £44,925 in 2024, reflecting retained earnings or capital injections.
• Compliance: All statutory accounts and confirmation statements are filed on time with no overdue filings, suggesting good governance and regulatory compliance.
• Stable management: The same two directors have been in place since incorporation, providing continuity in leadership.

4. Due Diligence Notes:

• Review the nature and terms of the £10,000 long-term liabilities to assess refinancing risk or repayment obligations.
• Obtain detailed cash flow statements to confirm the liquidity position beyond the balance sheet snapshot.
• Assess the business model and client base stability to understand operational sustainability given the company’s youth.
• Evaluate related party transactions given the significant shareholding by Beresford Incorporated Ltd and the directors’ control.
• Confirm absence of any director disqualifications or regulatory sanctions beyond Companies House filings.