Company Number: SC787177

Analysis Date: 2025-07-20 17:59 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks. The negative net current assets (-£72,839) and negative shareholders' funds (-£65,456) indicate the company is currently operating with a deficit and may struggle to meet its short-term obligations.

2. Key Concerns:

• Solvency and Liquidity Deficit: Current liabilities (£83,741) far exceed current assets (£10,240), resulting in a working capital shortfall that is a red flag for cash flow difficulties.
• Negative Equity Position: Shareholders' funds are substantially negative, reflecting accumulated losses or initial funding deficits that pose risks to financial stability.
• Newly Incorporated and Limited Operating History: Incorporated in late 2023 with only one year of financial data, the company’s operational viability and sustainability are unproven, increasing uncertainty.

3. Positive Indicators:

• No Overdue Filings: Both accounts and confirmation statement filings are up to date, demonstrating regulatory compliance and good governance in this respect.
• Clear Ownership and Control: The sole director and 75-100% shareholder is identified with no disqualifications, providing clear accountability in management.
• Active Website and Industry Positioning: The company operates in a defined niche (education/training) with an active online presence, which may support future growth.

4. Due Diligence Notes:

• Investigate the nature of the current liabilities: are these trade payables, loans, or director loans? Understanding repayment terms is critical.
• Assess the business plan and cash flow projections to determine how the company plans to address the working capital deficit.
• Review any related party transactions or capital injections that may affect financial stability.
• Confirm the operational status and trading activity since incorporation to evaluate sustainability prospects.
• Monitor ongoing regulatory filings and any changes in director status or company structure.