Company Number: SC676175

Analysis Date: 2025-07-29 13:41 UTC

1. Risk Rating: HIGH

Justification: The company’s financial statements reveal consistent negative net current assets and shareholders’ funds over the last four years, indicating a weak solvency position with liabilities exceeding current assets. The very low cash balance relative to current liabilities suggests liquidity strain. Furthermore, the company has no employees recorded, which may imply operational fragility or reliance on external contractors. While filings are up to date and no regulatory compliance issues are evident, the financial health raises significant concerns.

2. Key Concerns:

• Negative working capital for four consecutive years, with net current liabilities increasing from £498 (2020) to £28,564 (2023), signaling ongoing liquidity challenges.
• Shareholders funds are negative and deteriorating (£-500 in 2020 to £-14,166 in 2023), reflecting accumulated losses and an undercapitalized equity base.
• Very low cash reserves (£2,334 at 2023 year-end) compared to current liabilities (£746,010), indicating risk of inability to meet short-term obligations as they fall due.

3. Positive Indicators:

• The company is active and compliant with all filing deadlines; no overdue accounts or confirmation statements.
• Directors have maintained continuity since incorporation, and there are no public director disqualification records or governance concerns noted.
• The company operates in construction of domestic buildings, a sector with ongoing demand, and holds tangible fixed assets (£14,400) that may provide some collateral value.

4. Due Diligence Notes:

• Investigate the nature and terms of the large current liabilities (£746k) to understand if this includes loans, trade creditors, or other obligations and the maturity profile.
• Review detailed cash flow statements (not provided) to assess operational cash generation or further liquidity pressures.
• Clarify the absence of employees and how operational activities are managed—contractors, outsourcing, or otherwise.
• Consider the company’s business plan or prospects for turning around negative equity and working capital deficits.
• Verify the valuation and liquidity of stock assets (£715k) given they represent the bulk of current assets.