Company Number: SC679359

Analysis Date: 2025-07-29 12:57 UTC

1. Risk Rating: MEDIUM
   Justification: The company is active and compliant with filings, showing modest net assets and a small capital base. However, the net current assets are negative in the latest year and the balance sheet shows volatility with net liabilities in the prior year, which indicates some liquidity risk. The business scale is micro, limiting financial robustness.

2. Key Concerns:

• Liquidity strain: Negative net current assets (£2,985) in 2023 suggest short-term liabilities exceed current assets, posing cash flow challenges.
• Fluctuating net assets: Net assets swung from negative (-£388 in 2022) to positive (£8,215 in 2023), signaling inconsistent financial performance or capital injections.
• Shareholder control changes: A recent director appointment (2024) and shifts in PSC ownership could indicate governance or operational transitions requiring stability monitoring.

3. Positive Indicators:

• Timely filings: No overdue accounts or confirmation statements indicate good regulatory compliance.
• Micro entity status: Limited liabilities and simplified reporting reduce administrative burden and risk exposure.
• Modest fixed assets: Small asset base (£11,200) may reduce risk of over-leverage on fixed investments.

4. Due Diligence Notes:

• Review cash flow statements and working capital management to assess liquidity risks more deeply.
• Clarify reasons behind net asset fluctuations, including capital injections or valuation adjustments.
• Investigate any operational changes linked to director turnover and PSC updates to assess continuity and strategic direction.
• Assess customer concentration and revenue stability given the niche SIC codes in retail sale of plants and agents specialized in product sales.