Company Number: SC736415

Analysis Date: 2025-07-29 15:57 UTC

1. Risk Rating: HIGH
   The company shows a negative net asset position as of the most recent accounting period, indicating potential solvency concerns. The deterioration from a positive net asset of £10 to a deficit of £1,192 within one year is a red flag for financial stability.

2. Key Concerns:

• Negative net assets and net current liabilities (£1,192) as of 30 June 2024 suggest the company may struggle to meet short-term obligations.
• Significant reduction in current assets from £10,850 to £2,791 within a year, raising liquidity concerns.
• Limited operational scale with only one employee and micro-entity status, which may constrain the company’s ability to generate sustainable revenue and absorb financial shocks.

3. Positive Indicators:

• The company is current with all statutory filings (accounts and confirmation statement) and is not in liquidation or any formal insolvency process.
• Incorporated recently in June 2022, indicating it is a new business venture, which may explain early-stage financial volatility.
• No off-balance sheet transactions disclosed, suggesting transparency in financial reporting.

4. Due Diligence Notes:

• Investigate the reasons for the sharp decline in current assets and the increase in current liabilities over the latest financial year.
• Review cash flow statements and management forecasts to assess ongoing liquidity and operational viability.
• Confirm the nature and collectability of current assets and the composition of current liabilities.
• Assess business model and contracts to understand revenue generation and potential for financial recovery.
• Understand director background and governance practices given the company’s small size and financial position.