Company Number: SC756462

Analysis Date: 2025-07-29 18:57 UTC

1. Risk Rating: MEDIUM
   The company shows some early-stage financial strain indicated by a negative working capital position in the most recent year, but it remains solvent with positive net assets. Its recent incorporation and small scale limit historical financial insight.

2. Key Concerns:

• Negative Net Current Assets: As of 31 January 2025, current liabilities (£28,372) significantly exceed current assets (£4,483), resulting in a net current liability of £23,889. This poses a short-term liquidity risk and potential cash flow challenges.
• Rapid Increase in Current Liabilities: Current liabilities more than doubled from £13,334 in 2024 to £28,372 in 2025, without a corresponding increase in current assets or cash, indicating possible operational or financial stress.
• No Audited Accounts / Limited Financial History: The accounts are unaudited and the company was incorporated only in early 2023, limiting the ability to evaluate operational sustainability and historical performance trends.

3. Positive Indicators:

• Positive Net Assets and Shareholders’ Funds: Despite liquidity issues, the company maintains positive net assets (£12,289) and shareholders’ funds, suggesting capital injection or retained earnings that provide a cushion.
• Active Status and Compliance: The company is active and up to date with statutory filings, including annual accounts and confirmation statements, indicating regulatory compliance and governance awareness.
• Experienced Directors with Relevant Expertise: The two directors include a practicing gynaecologist and a banker, combining sector expertise and financial acumen, which may support sound business management and strategic decisions.

4. Due Diligence Notes:

• Investigate Causes of Increased Current Liabilities: Identify the nature of increased short-term payables and whether these are trade creditors, loans, or other liabilities impacting liquidity.
• Cash Flow Analysis and Forecasting: Review detailed cash flow statements and projections to assess if the negative working capital is a temporary timing issue or indicative of ongoing cash flow problems.
• Business Model and Revenue Streams: Obtain information on revenue generation, client base, contracts, and sustainability of operations given the company is in an early stage with no employees reported.
• Review Director Backgrounds and PSC Details: Verify the backgrounds and any potential conflicts or risks related to the significant controllers and their ability to support the business financially if required.