Company Number: SC680609

Analysis Date: 2025-07-29 20:35 UTC

1. Risk Rating: HIGH
   The company exhibits a negative net asset position and persistent net current liabilities, indicating solvency concerns. The financial structure reveals a reliance on significant long-term creditors exceeding total assets, raising questions about the company's ability to meet obligations as they fall due.

2. Key Concerns:

• Negative Net Assets: The company has net liabilities (£-6,366 as of 30 June 2024), deteriorating from previous years, signaling an erosion of shareholder equity.
• Working Capital Deficit: Substantial negative net current assets (£-41,952) reflect liquidity strain, with current liabilities far exceeding current assets, suggesting potential cash flow difficulties in meeting short-term obligations.
• High Long-Term Creditors: Creditors falling due after more than one year (£174,236) surpass total fixed assets, implying significant debt obligations that may not be fully secured by tangible assets.

3. Positive Indicators:

• Current Filing Compliance: The company has no overdue accounts or confirmation statements, indicating adherence to regulatory filing requirements.
• Stable Fixed Asset Base: Fixed assets have remained relatively stable (~£210,000), suggesting maintained investment in core property assets.
• Sole Control by Director: The sole director and 100% shareholder structure simplifies governance and decision-making processes.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term creditors to assess repayment schedules, interest rates, and security arrangements.
• Review cash flow statements and any available management accounts to understand operational cash generation and short-term liquidity management.
• Confirm whether there are any contingent liabilities or off-balance sheet obligations not reflected in the filings.
• Assess the company's business plan and strategy for addressing negative equity and liquidity deficits, including any planned capital injections or asset disposals.
• Verify the director’s intentions and capacity to support the company financially if required.