Company Number: SC691162

Analysis Date: 2025-07-29 20:16 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits ongoing net current liabilities and negative net assets in the latest financial year, indicating solvency concerns. The trend from positive net assets in 2021 to negative in 2024 suggests financial deterioration. The small scale (micro-entity) and limited capital base further heighten risk.

2. Key Concerns:

• Persistent negative working capital: Current liabilities exceed current assets by £18,330 as of 31 March 2024, implying liquidity constraints to meet short-term obligations.
• Negative net assets: The company has reported net liabilities of £1,526 at the latest year-end, eroding shareholder equity and raising solvency doubts.
• Small scale and limited financial buffers: With share capital of only £1 and micro-entity filing status, the company has minimal financial cushioning against operational or market shocks.

3. Positive Indicators:

• Consistent filing and compliance: No overdue accounts or confirmation statements, indicating regulatory compliance and good governance in filings.
• Gradual increase in average employees from 2 to 3 suggests operational activity and some growth.
• The director’s occupation aligns with the core business activity (joinery installation), potentially reflecting hands-on management.

4. Due Diligence Notes:

• Investigate causes of deteriorating liquidity and solvency, including cash flow statements if available, and creditor payment terms.
• Assess related party transactions or director loans that might impact financial position.
• Review any contingent liabilities or off-balance sheet obligations not evident in micro-entity accounts.
• Confirm ongoing operational contracts and revenue streams to evaluate sustainability.
• Evaluate director background for any prior insolvency or disqualification history, though none is indicated here.