Company Number: SC784109

Analysis Date: 2025-07-20 18:16 UTC

1. Risk Rating: MEDIUM
   The company is very recently incorporated (September 2023) and has filed its first set of accounts for a partial year ending September 2024. While the net asset position is positive (£10,625), the small scale of operations, minimal fixed assets, and relatively tight net current assets (£823) suggest limited financial buffer. The absence of audit and limited operating history increase uncertainty.

2. Key Concerns:

• Liquidity Pressure: Current liabilities (£54,933) almost equal current assets (£55,756) leaving only a slim net current asset margin (£823), which may constrain short-term cash flow flexibility.
• Small Scale and Early Stage: With only one employee on average and minimal tangible assets, the business may face operational risks and scalability challenges.
• Concentration of Control: One individual (Mr. Callum Mackenzie) exercises substantial control (75-100% shares and voting rights), which could present governance and succession risks.

3. Positive Indicators:

• Positive Net Assets: The company is solvent at the year-end with net assets of £10,625, indicating it can cover total liabilities with assets.
• No Overdue Filings: The company has complied with filing deadlines for accounts and confirmation statements, indicating good regulatory compliance to date.
• Clear Accounting Policies: The financial statements follow the UK small companies regime and FRS 102 Section 1A, reflecting compliance with appropriate accounting standards.

4. Due Diligence Notes:

• Verify the nature and timing of the significant "Other creditors" (£42,013) to assess risk of payment delays or supplier concentration.
• Assess turnover and profitability trends beyond the first accounting period once available to evaluate sustainability and growth.
• Investigate the background and reputation of the main director and controlling shareholder for any governance or operational risks.
• Review cash flow forecasts and working capital management to confirm liquidity assumptions in early-stage operations.
• Confirm whether the company has any contingent liabilities or pending legal matters not disclosed in the accounts.