Company Number: SC679200

Analysis Date: 2025-07-20 19:07 UTC

1. Risk Rating: MEDIUM
   The company’s net assets have increased modestly over the last few years but remain low at £10,900 as of October 2023. Current liabilities exceed current assets, indicating negative working capital and potential liquidity concerns. However, the company is not in liquidation and has no overdue filings, which somewhat mitigates immediate regulatory or operational risks.

2. Key Concerns:

• Liquidity Risk: Persistent negative net current assets (£-65,720 in 2023) suggest the company may struggle to meet short-term obligations without additional funding or asset sales.
• Low Equity Base: Shareholders’ funds are minimal and only slightly increased over 3 years (£3,049 in 2020 to £10,900 in 2023), limiting financial flexibility.
• Single Director and Micro Entity Status: With one director who is also the sole employee and a micro-entity filing, operational capacity and governance oversight may be limited.

3. Positive Indicators:

• No Overdue Filings: Both accounts and confirmation statements are filed on time, indicating compliance with Companies House requirements.
• Asset Growth: Fixed assets more than doubled from £35,940 in 2020 to £76,620 in 2023, suggesting some capital investment or acquisition of real estate assets relevant to the business SIC code (68100).
• Active Status: The company is active and not in liquidation or administration, demonstrating ongoing operations.

4. Due Diligence Notes:

• Review detailed composition of fixed assets to assess liquidity and valuation accuracy, particularly as the business is in real estate trading.
• Investigate the nature and maturity of current liabilities to understand funding structure and repayment risks.
• Understand the company’s revenue and cash flow generation, which is not disclosed, to evaluate operational sustainability.
• Confirm no undisclosed related party transactions or off-balance sheet liabilities given the micro-entity reporting exemptions.
• Assess director’s background and capacity to manage the company effectively, given sole directorship and occupation outside core business.