Company Number: SC726938

Analysis Date: 2025-07-20 18:16 UTC

1. Risk Rating: HIGH
   The company exhibits significant negative net current assets and shareholders' funds, indicating a weak solvency position and potential difficulty meeting short-term obligations.

2. Key Concerns:

• Persistent negative net current assets: £-700 as of 31 March 2024, worsening from £-148 in prior years.
• Negative shareholders' funds (£-145), reflecting accumulated losses or insufficient capital base.
• Very small asset base (fixed assets £555) and low current assets (£163), limiting liquidity and operational flexibility.

3. Positive Indicators:

• Company is compliant with filing deadlines for accounts and confirmation statements, indicating regulatory adherence.
• Director appears committed, with ongoing management and no disqualifications or adverse records noted.
• Business is in an active trading status since incorporation in 2022, suggesting ongoing operations.

4. Due Diligence Notes:

• Investigate the reasons for continual negative working capital and shareholder deficit—whether due to start-up losses, funding issues, or operational inefficiencies.
• Understand cash flow dynamics and how the company plans to meet current liabilities of £863 with limited current assets.
• Review business plan and forecasts to determine sustainability and potential for financial recovery or injection of capital.
• Confirm if there are any contingent liabilities or related party transactions not reflected in the accounts.
• Assess the director’s strategy for addressing solvency concerns and whether there is external funding or support.