Company Number: SC744770

Analysis Date: 2025-07-20 19:05 UTC

1. Risk Rating: LOW
   The company exhibits a stable financial position with positive net assets and net current assets, no overdue filings, and no indications of insolvency or liquidation. As a micro-entity with limited operational scale and a sole director/shareholder, risks appear contained.

2. Key Concerns:

• Declining Current Assets: Current assets decreased from £6,151 in 2023 to £3,698 in 2024, which may indicate reduced liquidity or cash reserves.
• Small Operational Scale: The business operates with only one employee and limited fixed assets (£4,622), which may constrain growth and operational resilience.
• Reliance on a Single Director/PSC: Mr Jonathan Frew holds 100% control, concentrating governance and operational risk.

3. Positive Indicators:

• Positive Net Assets and Net Current Assets: Net assets increased slightly to £7,290 in 2024, with net current assets remaining positive at £3,698, signaling solvency and working capital sufficiency.
• Timely Compliance: All statutory filings including accounts and confirmation statements are up to date with no overdue filings or penalties.
• Stable Shareholders’ Funds: Shareholders’ funds have been consistent, reflecting retained earnings or capital stability since incorporation.

4. Due Diligence Notes:

• Investigate the cause of decrease in current assets year-on-year and assess cash flow trends to confirm ongoing liquidity sufficiency.
• Review the business plan and client contracts to understand revenue streams and operational sustainability given the micro scale and single employee.
• Confirm the director’s experience and capacity to manage growth risks and compliance in a sole control structure.
• Verify any contingent liabilities or off balance sheet exposures not reflected in the financials.
• Assess any potential impact of the previous company name change on business continuity or client perception.