Company Number: SC683115

Analysis Date: 2025-07-29 19:41 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks as evidenced by a large negative net current asset position (£-177,122) and current liabilities vastly exceeding current assets. Its net assets and shareholders' funds are minimal (£4,318), indicating very limited equity buffer to absorb any losses or liabilities.

2. Key Concerns:

• Negative Working Capital: Current liabilities of £177,660 dwarf current assets of £538, suggesting an inability to meet short-term obligations from liquid resources.
• Minimal Equity Base: Shareholders funds of only £4,318 provide a very thin capital cushion, which raises concerns about financial stability and resilience.
• Lack of Audit and Limited Financial Disclosure: Being a micro-entity exempt from audit reduces external scrutiny. Limited financial history since incorporation in 2020 restricts trend analysis and risk assessment.

3. Positive Indicators:

• Active Status with Up-to-Date Filings: The company is active with no overdue filings, indicating compliance with Companies House requirements.
• Fixed Asset Base: The company holds fixed assets valued at £182,340, which could be a tangible resource potentially supporting operational activities or collateral.
• Stable Directorship: Two directors appointed at incorporation remain current, implying continuity in management.

4. Due Diligence Notes:

• Investigate the nature and terms of current liabilities (creditors) to assess urgency and potential for renegotiation or refinancing.
• Review cash flow statements or bank statements if available to understand liquidity management and operational cash generation.
• Clarify the composition and valuation basis of fixed assets to determine realizable value and potential for asset-based lending or sale.
• Examine any contingent liabilities or off-balance sheet exposures that may increase financial risk.
• Assess the business model and revenue generation capacity given the lack of profit or reserves and minimal net assets.