Company Number: SC691961

Analysis Date: 2025-07-19 12:54 UTC

1. Risk Rating: HIGH
   Justification: The company has transitioned from positive net assets (£7,570 in 2023) to net liabilities (-£2,601 in 2024), indicating a deterioration in financial stability. Negative net current assets (-£12,602) and insufficient cash (£7) suggest liquidity concerns. The absence of audit and a small equity base compound risks.

2. Key Concerns:

• Solvency Risk: The company’s net liabilities position and negative shareholders’ funds indicate it may struggle to meet its long-term obligations without recapitalisation or operational improvement.
• Liquidity Concerns: Cash holdings are negligible (£7), while current liabilities exceed current assets by over £12k, raising concerns about short-term cash flow and ability to cover immediate debts.
• Operational Stability: A sharp drop in debtors (from £139,728 to £30,531) and fixed assets (from £56,762 to £11,560) within one year, combined with a reduction in employees from 9 to nil, may signal operational downsizing or instability.

3. Positive Indicators:

• Timely Filings: The company is current on accounts and confirmation statement filings, indicating compliance with regulatory requirements.
• Ownership and Control: One individual controls 75-100% of shares and voting rights, which can facilitate swift decision-making and restructuring if needed.
• Ongoing Website Presence: An active website and contact information suggest the company maintains outward communication and client engagement.

4. Due Diligence Notes:

• Investigate the reasons behind the significant reduction in fixed assets and current assets between 2023 and 2024, including the loss of finance lease obligations and disposals.
• Review cash flow statements and management forecasts to assess the company’s ability to manage liquidity pressures and return to profitability.
• Evaluate the sustainability of operations given the reduction in employees and any changes in service delivery or contracts.
• Confirm if there are any contingent liabilities or overdue tax/social security payments given the high taxation and social security creditors.
• Clarify the nature and stability of debtors, especially amounts owed by participating interests, to assess collectability risk.