Company Number: SC736373

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

1. Risk Rating: MEDIUM
   While the company is active and compliant with filing deadlines, its financials reveal weak liquidity and very minimal net assets, raising moderate concerns about its ability to meet short-term obligations.

2. Key Concerns:

• Negative net current assets for the last three years (e.g., -£516 in 2024), indicating ongoing working capital deficits and potential liquidity stress.
• Extremely low shareholders’ funds and net assets (only £1 in 2024), suggesting minimal capital buffer to absorb losses or financial shocks.
• Accruals and deferred income increased notably (from £635 in 2023 to £1,150 in 2024), which could mask underlying cash flow timing issues.

3. Positive Indicators:

• The company is up to date with all statutory filings, including accounts and confirmation statements, implying sound regulatory compliance.
• The only director and sole shareholder is clearly identified, with no disqualifications or adverse records noted, suggesting stable governance.
• The business maintains very low fixed assets and a micro-entity reporting status, implying a lean operational model with potentially low overheads.

4. Due Diligence Notes:

• Investigate the nature of current liabilities and accruals to understand the timing and certainty of cash outflows.
• Review cash flow statements (not provided) or bank statements if available to assess actual liquidity and cash management.
• Understand the company’s revenue model, contracts, and customer base to evaluate operational sustainability given the financial constraints.
• Confirm whether any external financing or director loans exist that support ongoing operations.
• Assess any contingent liabilities or off-balance sheet risks that could worsen solvency.