JAMES CAIRN LTD

Executive Summary

JAMES Cairn Ltd exhibits a high risk profile primarily due to its negative net assets and significant working capital deficit, raising solvency and liquidity concerns. While statutory filings are current and fixed assets provide some backing, the absence of profitability and reliance on fixed assets without evident operational revenue undermine financial stability. Further investigation into asset quality, cash flows, and business viability is essential before considering investment.

JAMES CAIRN LTD - Analysis Report

Company Number: SC686333

Analysis Date: 2025-07-29 20:20 UTC

1. Risk Rating: HIGH
   Given the company's persistent net current liabilities exceeding £200,000 and negative net assets as of the latest accounts, there is a significant solvency concern. The absence of audit and limited financial disclosures further heighten this risk.

2. Key Concerns:

• Solvency Risk: The company’s net liabilities position (-£208) and negative working capital (-£202,548) suggest it may struggle to meet short-term obligations without additional capital infusion or restructuring.
• Liquidity Concerns: Negative current assets and large current liabilities imply cash flow constraints, increasing the risk of default on payables or operational disruption.
• Operational Stability: The company has reported no turnover or profit data, with fixed assets dominating the balance sheet. This raises questions about its revenue-generating capacity and ongoing operational viability.

3. Positive Indicators:

• Timely Filing: The company has filed accounts and confirmation statements on time, indicating compliance with statutory requirements.
• Stable Asset Base: Fixed assets remain consistent at £202,580 over multiple years, suggesting some tangible asset backing.
• Experienced Board: Directors appear consistent since incorporation with diverse occupational backgrounds, potentially supporting stable governance.

4. Due Diligence Notes:

• Investigate the nature and marketability of the fixed assets to assess their realizable value.
• Review cash flow statements or bank records (if available) to clarify liquidity status beyond the balance sheet snapshot.
• Confirm the company’s revenue model and whether it has generated income or incurred losses since incorporation.
• Ascertain if there are any contingent liabilities, related party transactions, or off-balance sheet liabilities not reflected in the filings.
• Verify directors' intentions and plans for addressing the negative net asset position.