Company Number: SC749106

Analysis Date: 2025-07-20 12:02 UTC

1. Risk Rating: HIGH
   The company exhibits significant liquidity and solvency concerns as evidenced by large negative net current assets and current liabilities exceeding current assets by a wide margin. The small equity base and negative working capital position increase financial risk.

2. Key Concerns:

• Severe Liquidity Deficit: Net current liabilities of approximately £185k (2024) and £195k (2023) indicate an inability to cover short-term obligations with current assets, primarily cash.
• High Short-Term Debt Burden: Current liabilities just over £205k significantly exceed cash and current assets, raising questions on how these commitments are serviced.
• Minimal Equity Cushion: Shareholders’ funds are very low (£14k in 2024), providing limited buffer against operational or financial shocks.

3. Positive Indicators:

• Stable Fixed Assets Base: Tangible fixed assets (land and property) valued near £199k are consistent over the years, indicating some asset backing.
• Compliance with Filing: Company is active, current with accounts and confirmation statement filings, demonstrating regulatory compliance.
• Single Experienced Director: The sole director has been in place since incorporation and controls the company fully, which may allow for quick decision making.

4. Due Diligence Notes:

• Investigate the nature and terms of the large current liabilities—creditors and other creditors—to assess repayment schedules, interest, and creditor relationships.
• Review cash flow statements and bank statements (not provided) to evaluate ongoing liquidity management and operational cash generation.
• Clarify the business model and revenue streams in property management to assess sustainability and potential for improving working capital.
• Confirm no director disqualifications or adverse regulatory actions given sole control by one individual.
• Assess any related party transactions or loans that might impact the financial position.