Company Number: SC739217

Analysis Date: 2025-07-29 15:23 UTC

1. Risk Rating: MEDIUM
   The company shows positive net assets and working capital, but the small scale of operations, recent incorporation, and presence of long-term creditors introduce moderate solvency and liquidity risks.

2. Key Concerns:

• Presence of £4,089 long-term liabilities against relatively modest total assets of £20,018 could pressure solvency if cash flows falter.
• Low asset base and micro-entity scale suggest limited financial flexibility and vulnerability to operational disruptions.
• Change of company name within 2 years and director resignation may indicate restructuring or internal governance changes needing clarification.

3. Positive Indicators:

• Net current assets of £6,681 and positive net assets of £15,929 provide a buffer to meet short-term obligations.
• No overdue filings or compliance issues noted; company is current with accounts and confirmation statements.
• Director with majority control is actively involved, suggesting continuity in leadership.

4. Due Diligence Notes:

• Review nature and terms of long-term liabilities to assess repayment risk and impact on cash flow.
• Investigate the reason for the director resignation and company name change to rule out operational or governance concerns.
• Verify business model robustness given micro-entity status and low turnover implied by accounts category.
• Confirm absence of contingent liabilities or off-balance sheet obligations that could affect solvency.