Company Number: SC727109

Analysis Date: 2025-07-20 14:47 UTC

1. Risk Rating: HIGH

Justification: The company, incorporated in 2022, shows very limited operational history and financial scale (micro-entity). While shareholders’ funds improved from negative in 2023 to a small positive in 2024 (£4,774), liabilities remain significant relative to assets. Current liabilities (£5,777) exceed current assets (£14,361) only slightly, but the presence of non-current creditors (£4,463) and minimal fixed assets (£653) raise concerns about medium-term solvency. The company employs no staff, indicating very limited operational activity and potential revenue generation. Directors’ recent resignations may also suggest governance or operational changes needing scrutiny.

2. Key Concerns:

• Solvency and Liquidity: Although current assets exceed current liabilities, the margin is narrow, and the company holds considerable long-term liabilities (£4,463) with negligible fixed assets, signaling potential solvency stress if revenue generation is not established.

• Operational Stability: Zero employees and minimal fixed assets indicate limited operational capacity and possibly an early-stage or dormant business model, which may not be sustainable without external funding or strategic development.

• Governance and Management Changes: Two directors resigned simultaneously at the end of June 2025, leaving sole control with the significant shareholder and remaining director. This concentration of control and recent board changes warrant further investigation into governance stability.

3. Positive Indicators:

• Compliance: The company’s filings (accounts and confirmation statements) are up to date, with no overdue returns, reflecting good regulatory compliance.

• Improved Net Equity: From a negative shareholders’ fund position in 2023 (-£700) to a positive balance (£4,774) in 2024, suggesting some financial improvement.

• Clear Ownership Structure: A single person with 75-100% ownership and full voting rights provides clarity on control and decision-making.

4. Due Diligence Notes:

• Verify the nature of current and non-current liabilities, their maturity profiles, and whether they are secured or repayable on demand.

• Assess whether the company has any trading activity or revenue streams, given zero employees and minimal asset base.

• Investigate the reasons behind the recent resignation of two directors and how this affects operational and strategic oversight.

• Review cash flow statements if available to better understand liquidity dynamics.

• Evaluate any related party transactions, given the sole controlling shareholder’s role.

• Confirm whether the company has plans for business development or capital injections to support future operations.