Company Number: SC669111

Analysis Date: 2025-07-29 16:54 UTC

1. Risk Rating: MEDIUM
   The company shows a notable decline in net assets and current assets over the last reported year, signaling potential solvency and liquidity concerns. However, it remains solvent with positive net assets and no overdue filings.

2. Key Concerns:

• Significant decrease in net assets from £28,914 (2023) to £12,703 (2024), indicating potential erosion of capital or profitability issues.
• Current assets have halved year-over-year (£32,010 to £16,427), while current liabilities remain substantial, reducing working capital and potentially impacting liquidity.
• Limited disclosure and absence of profit and loss data restrict assessment of operational performance and cash flow sustainability.

3. Positive Indicators:

• The company remains active and compliant with filing deadlines, reducing regulatory risk.
• Positive net current assets (£10,246) and net assets suggest the company is not insolvent at present.
• Small employee base (2 employees) and micro-entity status imply low operational complexity and costs.

4. Due Diligence Notes:

• Investigate reasons behind the sharp reduction in net assets and current assets during the last financial year.
• Review detailed profit and loss statements and cash flow reports to assess operational sustainability and liquidity trends.
• Confirm absence of contingent liabilities or off-balance-sheet obligations that could impact solvency.
• Verify director’s track record and confirm no adverse regulatory or governance issues.