Company Number: SC765975

Analysis Date: 2025-07-29 15:50 UTC

1. Risk Rating: HIGH
   The company exhibits negative net assets and net current assets, indicating a solvency risk. The liabilities exceed current assets by £3,185 and total net liabilities amount to £4,028. This is a significant red flag for a company incorporated less than a year ago, suggesting financial instability.

2. Key Concerns:

• Negative working capital (net current liabilities of £3,185) indicates potential liquidity constraints and difficulty meeting short-term obligations.
• Net liabilities (£4,028) and negative shareholders’ funds point to insolvency on a balance sheet basis.
• Limited financial history and minimal asset base (cash of £3,568 only) increase uncertainty about operational sustainability and ability to fund growth or unforeseen costs.

3. Positive Indicators:

• The company is compliant with statutory filing deadlines, with no overdue accounts or confirmation statements, indicating good governance and regulatory compliance to date.
• The controlling shareholder and director, Mr. Steven John McMahon, holds 75-100% ownership and voting rights, which may allow for decisive management and capital injections if needed.
• The company operates in a specialized sector (SIC 71200 - Technical testing and analysis), which could have niche market potential.

4. Due Diligence Notes:

• Investigate the nature and terms of the £843 "other loans" due after more than one year, including creditor identity, interest rates, and repayment conditions.
• Review the composition of the £6,754 "other creditors" due within one year to understand immediate financial obligations and creditor relationships.
• Obtain insight into the company’s business plan, revenue forecasts, and cash flow projections given the limited turnover information and negative equity position.
• Verify any contingent liabilities or off-balance sheet commitments not disclosed in the accounts.
• Clarify the reasons for negative retained earnings and assess the directors’ plans for financial recovery or capital raising.