Company Number: SC791076

Analysis Date: 2025-07-29 13:53 UTC

1. Risk Rating: MEDIUM
   The company is newly incorporated (Nov 2023) and has filed its first full accounts without audit exemption compliance. While showing positive net assets and shareholders’ funds, the small scale of operations and relatively high current liabilities for a young company suggest moderate risk in meeting short-term obligations.

2. Key Concerns:

• Current Liabilities vs Cash Position: Current liabilities of £22,799 against cash of £25,308 and minimal debtors (£134) leave limited liquidity buffer, raising potential cash flow pressure if receivables are delayed or expenses increase.
• Limited Operating History and Scale: Being less than a year old with only 2 employees and modest fixed assets means operational stability is not yet established. The business may be vulnerable to market fluctuations.
• Concentration of Control: Single individual (Paul John Mann) holds 75-100% shares and voting rights, which can pose governance risks and limit oversight, especially in a private company setting.

3. Positive Indicators:

• Positive Net Current Assets and Net Assets: The company shows net current assets of £2,643 and net assets of £14,451, indicating a positive working capital and equity base albeit small.
• Timely Filing and Compliance: No overdue filings for accounts or confirmation statements, demonstrating good regulatory compliance so far.
• Clear Business Focus and Active Online Presence: The company operates in architectural activities (SIC 71111) with an active website and contact points, suggesting ongoing commercial activity.

4. Due Diligence Notes:

• Review detailed cash flow statements and forecasts to assess liquidity under stress conditions.
• Investigate the nature of the significant current liabilities (£22,799), especially other creditors, to understand repayment terms and any contingent risks.
• Examine client base and contract pipeline to evaluate revenue sustainability and dependency risks.
• Assess the background and reputation of the controlling director, including any related party transactions or conflicts of interest.
• Verify the operational capability and whether the business model can scale profitably beyond the micro entity stage.