Company Number: SC783716

Analysis Date: 2025-07-20 18:54 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks, indicated by negative net assets and a large working capital deficit shortly after incorporation.

2. Key Concerns:

   • Negative Net Assets: The company’s balance sheet shows net liabilities of £36,430, reflecting that total liabilities exceed assets. This raises solvency concerns.
   • Severe Working Capital Deficit: Current liabilities (£796,486) far exceed current assets (£84,858), resulting in a negative net current asset position of £711,628. This suggests potential cash flow and short-term liquidity problems.
   • High Borrowings: The £611,679 classified as "other loans" among current liabilities indicates significant short-term debt, which may pressure the company’s financial stability given the limited cash and receivables.

3. Positive Indicators:

   • Substantial Fixed Assets: The company holds tangible fixed assets valued at £675,198, primarily land and property, which may provide collateral value to creditors or opportunities for refinancing.
   • No Overdue Filings: Both accounts and confirmation statements are filed on time, indicating compliance with regulatory requirements and governance diligence.
   • Sole Owner-Director: Mr. William Woodburn’s full ownership and directorship may facilitate swift decision-making and capital injections if necessary.

4. Due Diligence Notes:

   • Examine Loan Terms: Investigate the nature, maturity, and repayment terms of the £611,679 loan to assess refinancing risks and creditor relationships.
   • Cash Flow Projections: Review detailed cash flow forecasts and funding plans to understand how the company intends to address the working capital deficit and ongoing operational cash needs.
   • Asset Valuation: Confirm the valuation and liquidity of the fixed assets, particularly the land and property, to determine potential for sale or use as security.
   • Business Model and Contracts: Given the company is newly incorporated and operating in commercial building construction, assess current contracts, pipeline, and revenue generation capability to gauge operational sustainability.
   • Director’s Financial Support: Clarify if the sole director plans further capital injections or guarantees that may mitigate solvency risks.