Company Number: SC735037

Analysis Date: 2025-07-20 15:37 UTC

1. Risk Rating: HIGH
   Justification: The company shows negative net current assets and total net liabilities at the balance sheet date, indicating potential solvency and liquidity issues despite being a micro-entity.

2. Key Concerns:

• Negative Net Current Assets: The 2024 accounts reveal current liabilities (£5,140) exceeding current assets (£1,008) by £4,132, a significant working capital deficit.
• Overall Negative Net Assets: Total net liabilities are £1,168, reflecting that liabilities exceed assets, which raises solvency concerns.
• No Employees and Limited Fixed Assets: The lack of employees and minimal fixed assets (£3,152) may suggest limited operational scale or reliance on external contractors, possibly impacting business sustainability.

3. Positive Indicators:

• Timely Filing: Both accounts and confirmation statements are up to date with no overdue filings, indicating regulatory compliance and good governance practices.
• Active Website and Market Presence: The company maintains an active website with social media presence and a clear commercial proposition in online whisky auctions, which supports operational viability.
• Micro-entity Status: Being a micro-entity reduces administrative burdens and may reflect a lean cost structure.

4. Due Diligence Notes:

• Investigate Cash Flow and Trade Payables: Clarify the nature and timing of current liabilities and cash flow management to assess short-term liquidity risk.
• Review Business Model and Revenue Streams: Confirm revenue generation, customer base, and auction frequency to evaluate operational sustainability.
• Analyze Share Capital and Funding: Understand the composition and source of shareholders’ funds and any calls on unpaid share capital (£100 noted) to assess financial support.
• Confirm Director and Management Backgrounds: Given the financial position, assess management experience and any related party transactions.
• Examine Impact of Negative Net Assets: Determine if there are plans or recent capital injections to improve the balance sheet position.