Company Number: SC697394

Analysis Date: 2025-07-29 19:11 UTC

1. Risk Rating: MEDIUM
   The company shows positive net current assets and has met all filing deadlines, indicating operational compliance and some liquidity cushion. However, the very low net assets and significant long-term liabilities raise concern over solvency risk, warranting a medium risk rating.

2. Key Concerns:

• Low Net Assets: Net assets dropped from £12,712 in 2023 to £1,654 in 2024, indicating erosion of equity and potential financial stress.
• High Long-Term Liabilities: The company carries £68,000 of creditors due after more than one year, which is substantial relative to net assets and may pressure solvency if cash flows weaken.
• No Employees Reported: The absence of employees suggests the company may rely on directors or contractors, potentially impacting operational stability and limiting capacity for growth or resilience.

3. Positive Indicators:

• Positive Net Current Assets: £11,106 in 2024 shows the company can currently meet short-term obligations.
• Timely Filings: No overdue accounts or confirmation statements, reflecting good governance and compliance culture.
• Active Directors with Relevant Experience: Directors appointed have occupations related to sales and management, potentially contributing practical business oversight.

4. Due Diligence Notes:

• Investigate the nature and terms of the £68,000 long-term creditors to understand repayment obligations and impact on cash flow.
• Review cash flow statements (not provided) or bank statements to assess liquidity beyond balance sheet snapshots.
• Clarify operational model given zero employees, including reliance on directors or outsourcing and potential risks therein.
• Assess any contingent liabilities or off-balance-sheet obligations not disclosed in micro entity filings.
• Confirm no related party transactions that might affect financial health or shareholder equity.