Company Number: SC734739

Analysis Date: 2025-07-29 13:52 UTC

1. Risk Rating: MEDIUM

The company exhibits moderate solvency concerns with net current liabilities reported as of the latest accounts. While it remains active and compliant with filings, the working capital position has deteriorated significantly over the last financial year, raising liquidity caution. Operationally, the company’s scale is very small with a single employee and minimal fixed assets, indicating limited operational complexity but also limited resilience.

2. Key Concerns:

• Liquidity deterioration: Net current assets have turned negative from a positive £7,656 (as of June 2023) to a negative £573 (March 2024), indicating potential cash flow stress.
• High current liabilities relative to assets: The increase in creditors, especially taxation and social security liabilities (£33,458), suggests the company may be deferring or struggling with short-term obligations.
• Dividend payments: £30,905 dividends were paid during the period despite the weakened net asset position, which could impact cash reserves and creditor security.

3. Positive Indicators:

• Compliance: No overdue filings for accounts or confirmation statements, showing good regulatory adherence.
• Ownership and control: Clear and stable ownership by a single individual (Mr Jamie Keith McNeill) with no reported director disqualifications.
• Cash holdings: Despite current liabilities, the company holds £33,728 cash, a substantial portion of current assets, which could support short-term obligations.

4. Due Diligence Notes:

• Investigate the nature and timing of the increased creditors, particularly tax and social security liabilities, to assess payment risk.
• Review cash flow statements or management accounts to evaluate ongoing liquidity and operational cash generation.
• Understand the rationale behind dividend payments amid tightening liquidity to assess governance and financial prudence.
• Confirm whether there are any contingent liabilities or off-balance sheet obligations not reflected in the accounts.
• Consider the impact of the company’s very small scale and limited fixed assets on its ability to sustain operations or absorb shocks.