Company Number: SC721714

Analysis Date: 2025-07-29 14:23 UTC

1. Risk Rating: HIGH

Justification: The most recent accounts (year ending 29 February 2024) show a severe deterioration in financial position compared to prior years. Net current assets and net assets have collapsed from approximately £3,100 in 2023 to just £51 in 2024. Debtors have dropped from £4,090 to zero, and current liabilities remain significant relative to cash balances. The company barely maintains a positive working capital position and has minimal equity, indicating potential solvency and liquidity risk.

2. Key Concerns:

• Sharp decline in net assets and net current assets from £3,086 to £51 within one year suggests financial distress or possible write-offs/write-downs.
• Complete disappearance of debtor balances (£4,090 in 2023 to £0 in 2024) without corresponding increase in cash or reduction in liabilities raises questions about revenue recognition and cash collection.
• Minimal cash balance (£741) versus current liabilities (£690) means liquidity is extremely tight with little buffer for operational expenses or unexpected costs.

3. Positive Indicators:

• Company is compliant with filing deadlines for both accounts and confirmation statements, indicating regulatory compliance and governance discipline.
• Directors have been consistent since incorporation with no adverse records shown, suggesting stable management.
• The company operates in a niche sector (residents property management) which can provide steady recurring income if managed well.

4. Due Diligence Notes:

• Investigate reasons for the disappearance of debtors and whether revenue was deferred, written off, or collected but not reflected as cash.
• Review the company’s cash flow statements and bank reconciliations to assess actual liquidity and cash management practices.
• Understand the nature of the creditors and any contingent liabilities or off-balance sheet obligations.
• Confirm if there have been any operational disruptions, contract losses, or one-off exceptional charges in the latest financial year.
• Obtain clarity on any related party transactions or director loans that might affect financial position.
• Assess the company’s current trading status and prospects given the marked financial decline.