CCG (SCOTLAND) LIMITED

Risk Rating: MEDIUM Justification: While the company benefits from a long operational history and impeccable filing compliance, its status as a subsidiary operating in the inherently cyclical and margin-sensitive construction sector introduces structural vulnerabilities. Furthermore, the absence of detailed balance sheet and P&L data in this dataset prevents a full quantitative assessment of solvency and liquidity, necessitating a cautious medium rating.

Key Concerns: - Subsidiary Status and Group Contagion: The company is wholly-owned (more than 75%) by CCG(Holdings) Limited. This structure introduces significant risk regarding inter-company balances, upstream cash sweeps, or group guarantees. If the parent entity faces solvency issues, this subsidiary's liquidity could be rapidly drained. - Sector-Specific Volatility: Operating in commercial and domestic building construction (SIC 41100, 41201, 41202) exposes the company to macroeconomic cycles, fluctuating material costs, and project-specific risks such as contract retentions and disputes, which frequently strain working capital. - Limited Financial Transparency: The dataset only provides a share capital figure (£69,606). Without visibility into net current assets, total liabilities, or cash reserves, it is impossible to validate liquidity adequacy or solvency from the data provided.

Positive Indicators: - Corporate Longevity: Incorporated in 1974, the company has survived multiple economic cycles, demonstrating robust long-term operational stability and adaptability. - Excellent Regulatory Compliance: Accounts and confirmation statements are fully up to date, with no overdue filings. The company files "Full" accounts rather than abbreviated ones, which suggests a willingness to provide financial transparency to stakeholders. - Depth of Governance: The presence of seven current directors suggests a structured governance framework and adequate board capacity to oversee strategic and operational risks.

Due Diligence Notes: - Parent Company Analysis: Urgently review the financial statements and creditworthiness of CCG(Holdings) Limited to assess group-level contagion risk and understand how cash flows are managed within the wider group. - Inter-company Balances: When reviewing the full accounts, specifically isolate current and long-term inter-company debtor/creditor balances to determine if the subsidiary is funding the parent or vice versa. - Working Capital Position: Calculate the quick ratio and current ratio from the full accounts to ensure the company can cover its short-term trade payables and construction obligations without reliance on group support. - Director Disqualifications: Cross-reference the seven listed directors against the Insolvency Service database to ensure no hidden disqualification orders exist.