Company Number: SC654711

Analysis Date: 2025-07-29 17:09 UTC

1. Risk Rating: MEDIUM
   The company shows a notable decline in net assets and working capital during the latest financial year, with net current liabilities and reduced shareholders' funds, indicating emerging solvency and liquidity risks. However, it remains an active private limited company without indications of insolvency proceedings, which tempers the risk level.

2. Key Concerns:

• Declining Net Assets and Shareholders' Funds: From £1,454 in 2023 to £84 in 2024, indicating erosion of capital and potential solvency pressure.
• Negative Net Current Assets (£-317) in 2024: Current liabilities exceed current assets, which suggests liquidity constraints and potential short-term cash flow difficulties.
• High Taxation and Social Security Creditors (£5,738): This is a significant proportion of current liabilities, indicating possible tax payment delays or accruals that may affect cash flow.

3. Positive Indicators:

• Consistent Director and Ownership Stability: Sole director and 75-100% shareholder control by Mr. Jakub Jerzy Jatkiewicz, ensuring clear governance and decision-making authority.
• No Overdue Filings: Both accounts and confirmation statements are up to date, reflecting regulatory compliance and good standing.
• Cash Reserves: Although reduced, cash at bank (£4,994) remains available as of the latest year-end, providing some liquidity buffer.

4. Due Diligence Notes:

• Investigate reasons for the sharp decline in net assets and working capital in 2024 compared to prior years, including any one-off expenses or income reductions.
• Review details behind the substantial tax and social security liabilities to understand payment schedules and potential risks of HMRC enforcement action.
• Clarify the status and terms of director loans, including the recent repayment and dividend noted in March 2024, to assess impact on liquidity and equity.
• Examine turnover and profitability trends since turnover figures and profit and loss information were not provided in the filleted accounts.
• Assess any contingent liabilities or off-balance sheet commitments not visible in the filleted accounts.