Company Number: SC785293

Analysis Date: 2025-07-20 13:09 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks as evidenced by its net liability position and large current liabilities far exceeding current assets. The going concern assumption relies heavily on director support, indicating financial vulnerability.

2. Key Concerns:

• Negative net assets of £9,090 and net current liabilities of £437,600 as of 31 December 2024, indicating insolvency.
• Extremely low cash balance (£400) versus substantial current liabilities (£438,000), suggesting severe liquidity shortfall.
• Going concern dependent on director's financial support, which may not be sustainable or guaranteed.

3. Positive Indicators:

• Ownership of a tangible fixed asset (freehold property) valued at £428,510 provides some asset backing.
• The company is compliant with filing deadlines for accounts and confirmation statements, showing regulatory adherence.
• Small size and early stage of operation (incorporated October 2023) suggests potential growth if capital issues are resolved.

4. Due Diligence Notes:

• Clarify nature and terms of the £438,000 current liabilities (other creditors) to assess risk and repayment schedule.
• Investigate director’s financial support commitment details and contingency plans if support ceases.
• Review business plan and cash flow forecasts to determine operational sustainability and timeline to profitability.
• Confirm no director disqualifications or governance concerns given recent incorporation and sole director status.
• Evaluate market conditions and project pipeline in the building development sector for growth prospects.