Company Number: SC723158

Analysis Date: 2025-07-29 19:12 UTC

1. Risk Rating: MEDIUM
   Justification: The company shows a decline in net current assets from £4,100 in 2023 to a slight net current liability position (-£26) in 2024, indicating potential liquidity pressures. However, net assets remain positive and there is no evidence of overdue filings or insolvency processes. The company's short operating history (incorporated 2022) limits trend analysis.

2. Key Concerns:

• Liquidity deterioration: Cash balance dropped significantly from £7,510 to £4,309, while current liabilities increased slightly, leading to a negative net working capital at the latest year end.
• Related party balances: The presence of director loans and inter-company balances with no formal repayment terms could pose risks if not managed properly.
• Limited operational history: Incorporated in 2022, the company has only two full years of financial data, limiting the ability to assess long-term operational stability.

3. Positive Indicators:

• Positive net assets: Despite a decrease, shareholders' funds remain positive at £1,159, providing some buffer against liabilities.
• Up-to-date compliance: All statutory filings (accounts and confirmation statements) are current, indicating good regulatory compliance.
• Tangible fixed assets acquired: The company invested £1,652 in plant and equipment during the year, signaling some capital expenditure to support operations.

4. Due Diligence Notes:

• Investigate cash flow drivers and causes of cash reduction in the latest year to assess ongoing liquidity risks.
• Review the nature and terms of related party transactions and loans to evaluate potential financial exposure or conflicts of interest.
• Obtain management commentary or strategic reports to understand business model viability and plans to improve liquidity and profitability.
• Verify the company's customer base and contract stability given the specialized SIC codes spanning transportation support, electrical installation, and petroleum support activities.
• Monitor future filings for improvements or further deterioration in working capital and net assets.