Company Number: SC655336

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

1. Risk Rating: MEDIUM
   The company shows positive net assets and shareholder funds growth, but the significant increase in short-term liabilities and director-related balances warrants caution. The micro-entity scale limits the financial data scope, necessitating further investigation into operational cash flows and director transactions.

2. Key Concerns:

• Substantial increase in current liabilities from £1,429 in 2024 to £7,270 in 2025, indicating potential liquidity strain.
• Director advances and credits fluctuate significantly, with advances repaid and advanced again, suggesting reliance on director funding or possible cash flow management issues.
• Change in controlling shareholder and director in 2024, with concentration of 75-100% ownership and voting rights in one individual, which may increase governance risk.

3. Positive Indicators:

• The company remains active with timely filing of accounts and confirmation statements, indicating compliance with statutory obligations.
• Shareholders’ funds increased from £2,005 in 2024 to £10,352 in 2025, reflecting an improvement in net asset position.
• The company operates in a tangible trade (joinery installation) with growing fixed assets, suggesting investment in operational capacity.

4. Due Diligence Notes:

• Review underlying causes of the sharp increase in current liabilities and assess the company’s short-term payment obligations and cash flow forecasts.
• Investigate the nature and terms of director advances and credits, including any potential related-party transactions and their impact on liquidity.
• Assess the implications of the ownership and directorship changes on company governance and financial strategy.
• Verify the sustainability of the business model and revenue streams given the micro-entity status and limited employee base.