Company Number: SC671616

Analysis Date: 2025-07-20 17:18 UTC

1. Risk Rating: LOW to MEDIUM
   The company shows positive net current assets and net assets, indicating solvency. However, the declining net assets from £26,476 in 2023 to £18,761 in 2024 warrants monitoring. The micro-entity status and absence of employees suggest a small operational scale, which limits risk exposure but also potential growth.

2. Key Concerns:

• Declining net assets: The reduction from £26,476 to £18,761 over one year may point to increased liabilities or reduced profitability.
• Increased current liabilities: Current liabilities rose markedly from £3,236 in 2023 to £22,527 in 2024, which could pressure liquidity if not matched by cash inflows.
• No employees: The company operates with zero employees aside from the director, possibly limiting operational capacity and resilience.

3. Positive Indicators:

• Positive net current assets: £19,730 as of 2024 indicates the company can meet short-term obligations.
• Up-to-date filings: Accounts and confirmation statements are current, reflecting good regulatory compliance.
• Ownership and control concentrated: The sole director and 100% shareholder alignment simplifies governance and decision making.

4. Due Diligence Notes:

• Investigate the nature of the increased current liabilities in 2024 and whether they are short-term debts or accruals that could impact liquidity.
• Review the company’s revenue and profitability trends to understand the cause of net asset decline.
• Confirm the business model and client base given the lack of employees to assess operational sustainability.
• Verify any off-balance sheet liabilities or contingent risks not disclosed in the micro-entity accounts.