Company Number: SC757279

Analysis Date: 2025-07-20 15:39 UTC

1. Risk Rating: HIGH
   The company exhibits significant liquidity concerns due to net current liabilities of £44,987 against current assets of only £37,719, indicating an inability to meet short-term obligations without additional funding. Being a newly incorporated micro-entity with limited operating history increases uncertainty and risk.

2. Key Concerns:

• Negative net working capital (-£44,987) signals potential cash flow difficulties to cover immediate liabilities.
• The company is less than two years old, limiting financial track record and operational stability assessment.
• No audit performed (exempt under micro-entity rules), so financial information is unaudited and may carry greater risk of inaccuracies or omissions.

3. Positive Indicators:

• The company has positive shareholders' funds of £19,017, reflecting some initial equity capital invested.
• Directors appear committed and are also shareholders, potentially aligning management and ownership interests.
• No overdue filings or compliance issues noted; accounts and confirmation statements are up to date.

4. Due Diligence Notes:

• Investigate cash flow forecasts and funding plans to address current liabilities exceeding current assets.
• Review management strategy for achieving operational breakeven and scaling business activities.
• Confirm absence of contingent liabilities or off balance sheet risks that could exacerbate solvency concerns.
• Assess background and track record of directors for relevant sector experience and capacity to manage startup risks.