Company Number: SC721693

Analysis Date: 2025-07-29 19:12 UTC

1. Risk Rating: MEDIUM
   The company shows a significant decline in net current assets and net assets over the most recent year, indicating potential solvency and liquidity concerns. However, it remains solvent on a balance sheet basis with positive net assets.

2. Key Concerns:

• Declining Net Current Assets: Net current assets dropped from £9,637 in 2023 to £2,425 in 2024, suggesting reduced liquidity.
• Small Scale Operation: Micro-entity status with only one employee and limited asset base implies vulnerability to operational disruptions or cash flow volatility.
• Single Director and PSC Concentration: The sole director and 100% controlling shareholder is the same individual, which could pose governance and succession risks.

3. Positive Indicators:

• Compliance with Filing Requirements: All statutory accounts and confirmation statements are up to date with no overdue filings.
• Solvent Position: Despite decline, the company maintains positive shareholder funds and net assets, indicating it can currently meet liabilities.
• Clear Ownership and Control: Ownership and control are transparent, reducing risks related to hidden interests or complex structures.

4. Due Diligence Notes:

• Investigate reasons behind the sharp reduction in current assets and net assets over the 2024 financial year.
• Review cash flow statements and working capital management to assess liquidity trends and ability to meet short-term obligations.
• Confirm operational viability given the micro-entity scale and single employee structure, including any plans for scaling or diversification.
• Assess director’s background and capability, given sole control, and any related-party transactions or risks.
• Verify that no undisclosed contingent liabilities or regulatory issues exist, as none are evident from current filings.