Company Number: SC679623

Analysis Date: 2025-07-29 20:31 UTC

1. Risk Rating: HIGH

   The company exhibits significant signs of financial distress, primarily evidenced by a negative net current asset position as of the latest financial year-end. This indicates that current liabilities exceed current assets, raising concerns about the company's ability to meet short-term obligations.

2. Key Concerns:

   • Negative Working Capital: For the year ended 31 March 2024, net current assets are negative (£-1,004), a reversal from a positive position in prior years. This suggests liquidity issues and potential cash flow constraints.

   • Declining Net Assets/Shareholders' Funds: Shareholders' funds have deteriorated sharply from £7,107 in 2023 to £208 in 2024, indicating erosion of the company’s equity base.

   • Limited Financial Scale and Resources: The company is classified as a micro-entity with minimal fixed assets (£1,212) and nominal share capital (£100), which may limit its capacity to absorb financial shocks.

3. Positive Indicators:

   • Compliance with Filings: The company is current on its statutory filings, with no overdue accounts or confirmation statements, reflecting adherence to regulatory requirements.

   • Stable Management: The company has a single director since incorporation, suggesting continuity in leadership.

   • No Insolvency Proceedings: The company is active and not subject to liquidation, administration, or receivership proceedings at present.

4. Due Diligence Notes:

   • Examine Cash Flow Details: Investigate the underlying causes of the negative working capital, including cash flow statements and creditor/debtor aging analysis, to assess liquidity risk more precisely.

   • Review Business Model and Revenue Trends: Given the sharp decline in net assets, understanding operational performance and revenue streams is critical to evaluate sustainability.

   • Assess Related Party Transactions and Funding: Check for any director loans, injections of capital, or related party transactions that may not be reflected in limited accounts.

   • Evaluate Going Concern Assumptions: The micro-entity accounts do not include audit or detailed disclosures; further scrutiny of management’s assessment of viability is warranted.

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