Company Number: SC736511

Analysis Date: 2025-07-20 18:27 UTC

1. Risk Rating: MEDIUM
   The company shows modest net asset growth but persistent negative net current assets indicate liquidity constraints, posing a medium solvency risk. The micro-entity status and minimal employee count limit financial disclosure, restricting full risk assessment.

2. Key Concerns:

• Negative net current assets (£-35,619 in 2024) suggest working capital deficiencies that could impair the company’s ability to meet short-term liabilities.
• Presence of long-term creditors (£13,623 due after one year) without detailed disclosure may signify reliance on external financing, increasing solvency risk.
• No audit conducted and limited financial disclosures as a micro-entity restrict transparency, potentially masking operational or financial challenges.

3. Positive Indicators:

• Net assets increased from £20,252 in 2023 to £40,696 in 2024, indicating some growth in shareholder equity and fixed assets.
• The company is current with statutory filings, with no overdue accounts or confirmation statements, demonstrating compliance with regulatory requirements.
• The business has been operating since mid-2022 and maintains stable director leadership, suggesting operational continuity.

4. Due Diligence Notes:

• Review the nature and terms of both short-term and long-term liabilities to understand repayment schedules and any covenants.
• Examine cash flow statements (if available) or bank statements to assess liquidity management and ability to cover current liabilities.
• Investigate revenue streams and profitability trends since incorporation to evaluate operational sustainability.
• Confirm absence of director disqualifications or adverse regulatory actions given limited disclosure.
• Understand the business model under SIC code 68209 to assess sector-specific risks and competitive position.