Company Number: SC711599

Analysis Date: 2025-07-20 18:55 UTC

1. Risk Rating: MEDIUM
   The company shows some signs of financial strain, notably a negative net current asset position in the latest year, but remains operational with modest net assets and no overdue filings. The increase in liabilities and reduction in net assets warrant caution.

2. Key Concerns:

• Negative Net Current Assets: As of 31 December 2024, current liabilities exceed current assets by £4,801, indicating potential short-term liquidity issues.
• Increasing Long-Term Creditors: Creditors due after one year rose from £5,627 in 2023 to £8,473 in 2024, suggesting growing debt obligations that may pressure cash flow.
• Declining Net Assets: Net assets decreased from £2,295 in 2023 to £1,806 in 2024, reflecting erosion of equity, which could impact solvency if the trend continues.

3. Positive Indicators:

• Active and Compliant Status: The company is active with no overdue accounts or confirmation statements, indicating good regulatory compliance and governance.
• Growing Operational Scale: The average number of employees increased from 2 in 2023 to 5 in 2024, suggesting business expansion and increased operational capacity.
• Fixed Asset Growth: The fixed assets nearly doubled from £7,815 to £15,080, which may indicate investment in business infrastructure or equipment supporting long-term operations.

4. Due Diligence Notes:

• Investigate the nature and terms of both short-term and long-term creditor balances to assess repayment schedules and interest obligations.
• Review detailed cash flow statements (if available) to understand liquidity management and operational cash generation capability.
• Examine management plans or strategies addressing the negative working capital and declining equity to evaluate sustainability.
• Confirm if the profitability and revenue trends align with asset growth and increased employment to ensure operational stability.