Company Number: SC766007

Analysis Date: 2025-07-20 19:17 UTC

1. Risk Rating: HIGH
   The company shows significant net liabilities (£-20,131) and negative working capital (£-35,540) within its first financial year, indicating substantial solvency and liquidity risk.

2. Key Concerns:

• Negative net current assets and net liabilities: Current liabilities far exceed current assets, posing immediate liquidity concerns.
• Deferred tax liability of £5,136 with no profits reported, raising questions about future profitability and tax planning.
• The company was incorporated recently (April 2023) and has limited operational history, increasing uncertainty regarding operational stability and ability to generate sustainable cash flows.

3. Positive Indicators:

• Directors have filed accounts and confirmation statements on time, indicating regulatory compliance currently.
• The company holds tangible fixed assets (£20,545), suggesting some investment in operational capacity.
• Shareholders (directors) hold significant control, likely ensuring commitment to the business.

4. Due Diligence Notes:

• Investigate the nature and cause of the significant creditor balance (£35,952) due within one year and payment terms.
• Understand the business model, revenue generation, and plans to improve liquidity and profitability.
• Review any related party transactions or funding arrangements from shareholders or external lenders.
• Confirm no director disqualifications or governance issues beyond current filings.
• Assess market conditions and sector risks related to SIC 71129 (Other engineering activities) for operational sustainability.