Company Number: SC685410

Analysis Date: 2025-07-29 19:49 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns given persistent net current liabilities exceeding £50,000 each year, minimal cash on hand (£842 at last year-end), and a history of negative working capital. Despite increased total assets from fixed asset revaluation, the current liabilities dwarf current assets, indicating potential difficulty meeting short-term obligations.

2. Key Concerns:

• Negative Net Current Assets: The company consistently reports net current liabilities around £50,000, which poses a risk to paying off immediate debts.
• Minimal Liquidity: Cash reserves are negligible (£842), raising concerns about the company’s ability to cover operational expenses or unexpected cash demands.
• Lack of Operating Activity or Employees: No employees reported and omission of income statement suggests limited or no trading activity, which questions operational sustainability.

3. Positive Indicators:

• Asset Base Growth: Tangible fixed assets increased from £50,000 to £70,000 due to revaluation, improving overall net asset position.
• No Overdue Filings: The company has met all filing deadlines for accounts and confirmation statements, indicating compliance with regulatory obligations.
• Sole Director and PSC Alignment: Control is consolidated under a single director and shareholder, which may facilitate decisive management actions.

4. Due Diligence Notes:

• Investigate the nature and collectability of current liabilities and what they comprise (e.g., trade creditors, loans).
• Clarify the company’s revenue generation or business activity given the absence of income statements and employees.
• Assess cash flow projections or plans to improve liquidity and reduce net current liabilities.
• Verify the basis and frequency of fixed asset revaluations and confirm if assets are realizable at stated values.
• Review any contingent liabilities or off-balance sheet obligations not disclosed in filings.