FMC20 LIMITED

Executive Summary

FMC20 LIMITED exhibits significant financial and operational inactivity as evidenced by a static minimal balance sheet and zero employees over multiple years. While compliant with statutory filings and maintaining active status, the company’s lack of substantive assets or trading history signals high risk from a solvency and liquidity perspective. Further investigation into the company’s actual business operations and purpose is essential before considering any investment exposure.

FMC20 LIMITED - Analysis Report

Company Number: SC699231

Analysis Date: 2025-07-29 18:58 UTC

1. Risk Rating: HIGH
   The company shows extremely limited financial activity, with total net assets consistently reported as £1 over multiple years and zero employees. This minimal balance sheet size indicates no meaningful operational scale or capital base, raising significant concerns about solvency and liquidity.

2. Key Concerns:

• Financial Insignificance: Current assets and net assets remain at £1 for four consecutive years, suggesting no trading activity or investment, which implies inability to meet financial obligations.
• No Employees: The absence of any employees points to a lack of operational activity or staff to sustain business functions.
• Concentration of Control: Ownership and voting rights are held entirely by individuals associated with the same family (Mr. James McKay and Mr. Callum McKay), which may raise governance and succession risks.

3. Positive Indicators:

• Compliance with Filing Requirements: The company is up to date with its accounts and confirmation statement filings, with no overdue returns noted.
• Active Status: The company remains active and is not in liquidation or administration, indicating it has not yet entered formal distress processes.
• Micro-entity Reporting: Compliance with the micro-entity filing regime suggests cost-effective management of statutory obligations.

4. Due Diligence Notes:

• Operational Activities: Investigate whether FMC20 LIMITED is trading or is effectively dormant despite its active status, as financials indicate no scale.
• Financial Transactions: Review bank statements or other financial records to verify cash flows or confirm absence of trading.
• Purpose of Entity: Clarify the business model and future plans, given the SIC code for retail sale of clothing but no reported turnover or assets beyond £1.
• Director and PSC Background: Although no disqualifications are noted, vet the directors’ and PSCs’ reputations and related party transactions given ownership concentration.