Company Number: SC732769

Analysis Date: 2025-07-20 14:40 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns as evidenced by persistent negative net current assets and very high creditor balances relative to minimal current assets and equity. The financial structure suggests a risk of inability to meet short-term obligations without external support.

2. Key Concerns:

• Negative Working Capital: Net current assets are negative (£-71,820 in 2024), indicating potential difficulties in covering short-term liabilities with available current assets.
• High Long-Term Creditors: Substantial amounts due after more than one year (£801,278) vastly exceed equity, raising questions about debt servicing capacity and financial sustainability.
• Minimal Equity Base: Shareholders’ funds stand at only £100 with no visible retained earnings or reserves, reflecting very limited financial buffer and capitalisation.

3. Positive Indicators:

• No Overdue Filings: The company is current with both accounts and confirmation statement filings, suggesting regulatory compliance and governance discipline.
• Going Concern Assertion: The director affirms the going concern basis, indicating management’s confidence in operational continuity despite financial challenges.
• Ownership and Control Clarity: Single shareholder/director structure (Mrs Kelly Ann Devlin) simplifies governance and decision-making processes.

4. Due Diligence Notes:

• Nature of Creditors: Investigate the composition and terms of the large creditor balances, especially the £801k long-term creditors, to assess repayment risk and any related party transactions.
• Investment Asset Valuation: The fixed asset investment of £873,198 requires scrutiny regarding its nature, liquidity, and fair valuation, as it significantly affects the balance sheet presentation.
• Profit and Loss Details: The absence of profit and loss information limits assessment of operational performance; request detailed income statements and cash flow analyses.
• Cash Flow Management: Examine cash flow forecasts and banking arrangements, given the very low cash balance (£100) relative to liabilities.
• Director’s Financial Support: Determine if the director or related parties have provided financial support or guarantees to sustain the company.