Company Number: SC683109

Analysis Date: 2025-07-29 18:50 UTC

1. Risk Rating: MEDIUM
   The company exhibits a recent decline in liquidity with net current liabilities reported for 2024, raising concerns about short-term solvency despite positive net assets. The micro-entity status and small scale limit financial disclosure but show a working business with maintained filings and no overt regulatory issues.

2. Key Concerns:

• Liquidity deterioration: Net current liabilities of £702 in 2024 compared to net current assets of £6,214 in 2023 indicate a significant working capital squeeze that could impact meeting short-term obligations.
• Declining net assets: Net assets decreased notably from £6,330 in 2022 to £1,113 in 2024, suggesting erosion of equity possibly due to losses or asset write-downs.
• Concentration of control: Single shareholder/director owning 75-100% of shares and voting rights implies governance risks, including lack of independent oversight.

3. Positive Indicators:

• Compliance: All statutory filings including accounts and confirmation statements are up to date with no overdue returns or penalties.
• Consistent operation: The company has been active since 2020 with stable employee count and continues to trade within its niche SIC classifications.
• Modest fixed assets growth: Fixed assets increased from £860 in 2023 to £2,215 in 2024, potentially indicating investment in operational capacity.

4. Due Diligence Notes:

• Investigate the reasons behind the sharp decline in current assets and increase in current liabilities in 2024, including cash flow statements if available.
• Review the profit and loss account or management accounts to determine whether operational losses or extraordinary items contributed to reduced net assets.
• Assess the director’s background and governance practices given the sole control and examine any potential related party transactions or conflicts of interest.
• Confirm whether the company’s business model and client base remain stable and sustainable despite financial fluctuations.
• Verify if there are any contingent liabilities or off-balance sheet risks not captured in micro-entity accounts.