Company Number: SC719515

Analysis Date: 2025-07-29 19:01 UTC

1. Risk Rating: LOW
   The company exhibits a low risk profile based on available financial and compliance data. It maintains positive net current assets and net assets, has no overdue filings, and operates as a micro-entity with modest but stable financials.

2. Key Concerns:

• Declining Asset Base: Current assets decreased from £6,566 in 2023 to £3,743 in 2024, indicating potential reduction in liquidity or operational scale.
• No Employees Reported: The accounts show zero employees, which may imply reliance on subcontractors or owner-executed work; this could impact operational scalability and sustainability.
• Limited Financial History and Scale: Incorporated recently (2022) and classified as a micro-entity, the company has limited financial track record and small capital base, which may constrain growth and resilience to shocks.

3. Positive Indicators:

• Positive Working Capital: Net current assets remain positive (£2,544 in 2024), suggesting ability to meet short-term liabilities.
• Compliance: No overdue accounts or confirmation statements; filings are up to date, indicating good governance in statutory compliance.
• Strong Control and Stability: Single director and 75-100% shareholder (Graham Sharp) ensures clear decision-making and control, reducing governance risk.
• No Indication of Financial Distress: No evidence of insolvency proceedings or director disqualifications.

4. Due Diligence Notes:

• Investigate reasons for decline in current assets and cash holdings between 2023 and 2024 to assess liquidity trends.
• Confirm operational model given zero employees—e.g., use of subcontractors, outsourcing, or sole trader activity.
• Assess revenue and profitability trends (not available here) to better understand business sustainability.
• Verify director’s background beyond what's presented to rule out any non-public risks.
• Review any contracts or client dependencies given limited scale and recent incorporation.