Company Number: SC769649

Analysis Date: 2025-07-29 14:14 UTC

1. Risk Rating: HIGH

Justification: The company's financial data indicates negative shareholders' funds as of the latest accounting period, with current liabilities exceeding current assets. This suggests potential solvency issues and weak liquidity. The company is very young (incorporated in 2023) with limited operational history and minimal financial resources, increasing risk exposure.

2. Key Concerns:

• Negative Net Worth: Shareholders’ funds declined from £542 in 2024 to -£758 in 2025, indicating accumulated losses or erosion of equity.
• Working Capital Deficit: Current liabilities (£12,788) exceed current assets (£10,951), signaling potential liquidity constraints and possible difficulties meeting short-term obligations.
• Limited Operational Scale: The company operates as a micro-entity with only one employee on average, which may limit operational resilience and capacity to withstand financial shocks.

3. Positive Indicators:

• Compliance: No overdue filings for accounts or confirmation statements, showing good regulatory adherence.
• Clear Ownership and Governance: Majority control (75-100%) by a single individual, Mr. Jack Charlie Hodson, suggests straightforward decision-making and accountability.
• Industry Focus: Engaged in "Other construction installation," an activity that can have steady demand if managed well.

4. Due Diligence Notes:

• Investigate the causes behind the drop into negative equity, including any extraordinary expenses or write-offs.
• Review the company’s cash flow projections and funding plans to assess their ability to cover current liabilities.
• Examine contracts, client base, and revenue streams to evaluate business sustainability and growth prospects.
• Confirm no undisclosed contingent liabilities or related party transactions that could exacerbate financial risk.
• Assess management experience and plans to improve financial stability.