Company Number: SC689333

Analysis Date: 2025-07-29 21:00 UTC

1. Risk Rating: HIGH
   Justification: The company shows persistent net current liabilities exceeding £40,000 over multiple years, indicating ongoing liquidity stress. Minimal cash reserves (£661 in 2024) against high short-term creditors (~£42,000) suggest difficulty in meeting immediate obligations. The very low share capital (£2) and lack of business scale also raise concerns about financial resilience.

2. Key Concerns:

• Negative Working Capital: The company’s current liabilities far exceed current assets, pointing to potential cash flow problems and risk of default on short-term debts.
• Minimal Operational Activity: No employees reported and minimal current assets, implying limited operational capacity or income generation which may hinder sustainability.
• Thin Capital Base: Share capital of only £2 and net assets under £3,000 could be insufficient to absorb potential losses or support expansion.

3. Positive Indicators:

• Compliance: The company is active and up to date with both accounts and confirmation statement filings, indicating regulatory adherence.
• Tangible Fixed Asset: Ownership of land and buildings valued at £44,100 provides some asset backing, which may support borrowing or sale if needed.
• Stable Ownership and Management: Directors and secretary have been consistent since incorporation, reducing governance instability risk.

4. Due Diligence Notes:

• Investigate the nature and terms of the short-term creditors (£42k) to assess immediacy and likelihood of payment default or renegotiation.
• Evaluate cash flow statements and income sources absent from current data to determine operational revenue and sustainability.
• Clarify business model viability given lack of employees and minimal current assets despite property holdings.
• Confirm absence of any contingent liabilities or legal proceedings that may exacerbate financial stress.
• Review shareholders’ intentions and capital injection plans given low equity base.