Company Number: SC775978

Analysis Date: 2025-07-20 18:24 UTC

1. Risk Rating: HIGH
   The company shows negative net current assets and overall negative shareholders' funds within its first financial year, indicating an immediate solvency concern.

2. Key Concerns:

• Negative Working Capital: Current liabilities (£7,316) exceed current assets (£2,940) by £4,376, signaling liquidity pressure to meet short-term obligations.
• Negative Net Assets: Total assets less current liabilities stand at -£399, meaning the company’s liabilities surpass its assets.
• Newly Incorporated with No Operating History: Incorporated only in July 2023 with a single employee and limited financial data, increasing uncertainty about operational stability.

3. Positive Indicators:

• Compliance with Filing Requirements: Accounts and confirmation statements are filed on time, suggesting good regulatory compliance to date.
• Clear Ownership and Control: Single director and 75-100% shareholder alignment may simplify decision-making processes.
• Micro-Entity Classification: Small size limits regulatory burden and complexity.

4. Due Diligence Notes:

• Investigate the nature and timing of current liabilities to assess if any short-term debts are overdue or at risk of triggering enforcement actions.
• Review cash flow projections and funding arrangements to determine how liquidity issues will be addressed going forward.
• Assess management plans for addressing negative equity and achieving operational break-even.
• Confirm no related party transactions or contingent liabilities that may further impact financial stability.
• Monitor director’s background for any history of disqualifications or adverse conduct (none indicated currently).