Company Number: SC683087

Analysis Date: 2025-07-29 18:57 UTC

1. Risk Rating: MEDIUM
   The company shows a positive net asset position and modest working capital, but the recent increase in long-term liabilities and the tight net current assets warrant caution. The business appears operationally stable but with some liquidity constraints that merit monitoring.

2. Key Concerns:

• Rising Long-Term Creditors: The jump from zero to £126,871 in amounts due after more than one year in 2024 may indicate increased borrowing or deferred liabilities, potentially increasing financial risk if cash flows are insufficient.
• Tight Working Capital: Net current assets decreased sharply from £44,018 in 2023 to £3,483 in 2024, suggesting liquidity is very tight and could constrain day-to-day operations or the ability to meet short-term obligations.
• Limited Equity Base: Share capital remains nominal (£100) with shareholder funds primarily derived from retained earnings. The company has limited equity buffer to absorb shocks or losses.

3. Positive Indicators:

• Growing Fixed Assets: A substantial increase in fixed assets from £47,236 to £215,827 in 2024 indicates investment in operational capacity, which may support future revenue growth.
• Consistent Profit Retention: The increase in shareholders’ funds from £91,254 to £92,439 reflects retained profits and suggests ongoing operational profitability.
• Compliance and Timely Filings: The company is active, with no overdue accounts or confirmation statements, indicating good regulatory compliance and governance practices.

4. Due Diligence Notes:

• Review Nature and Terms of Long-Term Creditors: Understand the source, repayment terms, and covenants associated with the £126,871 of long-term liabilities to assess refinancing or default risks.
• Cash Flow Analysis: Examine detailed cash flow statements to confirm the company's ability to meet short-term liabilities given the tight net current assets in 2024.
• Profitability Trends and Revenue Stability: Investigate income statement details (not available here) to validate consistent profitability and assess exposure to market or operational risks in the waste and scrap wholesale sector.
• Director Backgrounds and Related Party Transactions: Confirm the absence of any director disqualifications or conflicts of interest given the company’s linked directors and related occupations.