Company Number: SC686213

Analysis Date: 2025-07-29 17:14 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, with net current liabilities and a steep decline in net assets over the most recent year, indicating heightened financial distress.

2. Key Concerns:

• Negative Working Capital: The company’s net current assets declined sharply to -£3,568 in 2024 from -£882 in 2023, showing an inability to cover short-term liabilities with current assets.
• Dramatic Reduction in Net Assets: Net assets fell from £3,227 in 2023 to just £115 in 2024, signaling possible erosion of equity and potential insolvency risk.
• High Long-Term Creditors: Creditors due after more than one year are substantial relative to total assets (£5,422 in 2024), which raises concerns about the company’s capacity to meet long-term obligations.

3. Positive Indicators:

• Compliance with Filing Requirements: The company is up to date with accounts and confirmation statement filings, reducing regulatory compliance risk.
• Single Director with Full Control: Mr. Robert Campbell, also the sole significant controller and director, may provide streamlined decision-making and operational oversight.
• Micro-Entity Status: The small scale of operations may limit exposure, and the company benefits from simplified accounting rules.

4. Due Diligence Notes:

• Investigate the reasons behind the large drop in net assets and worsening liquidity from 2023 to 2024, including any extraordinary expenses or losses.
• Review the nature and terms of long-term creditors to assess repayment schedules and potential restructuring needs.
• Clarify the company’s cash flow situation beyond balance sheet figures, including any overdrafts, loan covenants, or contingent liabilities.
• Confirm the operational model and revenue streams supporting the business since limited financial data is available.
• Verify the director’s plans to address the deteriorating financial position and explore any related party transactions or financial support.