Company Number: SC677906

Analysis Date: 2025-07-29 20:22 UTC

1. Risk Rating: MEDIUM
   The company displays some solvency and liquidity concerns based on recent financials, particularly a negative shareholders' funds figure as of 2023. However, it is current with statutory filings and remains active, which mitigates some operational risk.

2. Key Concerns:

• Negative equity position in 2023 with shareholders' funds at -£2,476 indicating a potential solvency strain.
• Current liabilities (£54,800) exceed current assets (£39,254) in 2023, resulting in negative net working capital and liquidity pressure.
• Significant changes in director appointments within a short timeframe may indicate governance or operational instability.

3. Positive Indicators:

• Company remains active and compliant with accounts and confirmation statement filings, with no overdue submissions.
• The company benefits from a registered office and operating presence in Glasgow, with a clear industry focus on essential oils manufacturing (SIC 20530).
• Share capital of £300 and presence of a significant shareholder (Sungold Escrow Nominees Ltd controlling 75-100% shares) provides some capital backing.

4. Due Diligence Notes:

• Investigate reasons for the sharp decline in shareholders' funds from positive £14,864 in 2022 to negative £2,476 in 2023, including any extraordinary losses or write-downs.
• Clarify the nature and maturity profile of the £54,800 current liabilities and £18,890 short-term creditors reported in 2023 to assess cash flow timing risks.
• Review director turnover impacts and governance controls, particularly the resignations of two directors in 2023 and how this affects strategic continuity.
• Confirm the accuracy and completeness of financial records given the exemption from audit and whether any contingencies or off-balance sheet liabilities exist.