Company Number: SC723558

Analysis Date: 2025-07-29 18:50 UTC

1. Risk Rating: HIGH
   The company exhibits negative net assets and net current liabilities, indicating solvency concerns. Reliance on loans from a related party for going concern support also heightens risk.

2. Key Concerns:

• Negative Net Assets: Shareholders’ funds stand at -£978, indicating an excess of liabilities over assets with no equity buffer.
• Working Capital Deficiency: Net current assets are negative (£-1,197), showing insufficient liquid assets to cover short-term obligations.
• Dependence on Group Funding: Going concern is reliant on financial support from the parent/fellow group company, which may not be sustainable long term.

3. Positive Indicators:

• Filing Compliance: Accounts and confirmation statements are filed on time, reflecting regulatory compliance.
• Active Status & Industry: The company is active and operates in environmental consulting, a growing sector aligned with renewable energy trends.
• Single Shareholder Control: Ownership and control by a single group entity (Locogen Developments Holdings Limited) may facilitate coordinated strategic decisions and funding.

4. Due Diligence Notes:

• Investigate the terms and sustainability of intercompany loans funding the company’s operations.
• Review group-level financial health and willingness to continue support, given the company’s negative equity.
• Assess business plan viability and operational cash flow projections to understand if the company can move toward profitability and positive net assets.
• Confirm absence of director disqualifications or regulatory issues beyond public filings.
• Consider impact of name changes on brand reputation or operational continuity.