Company Number: SC737391

Analysis Date: 2025-07-20 16:10 UTC

1. Risk Rating: HIGH
   The company shows significant negative net assets and a large working capital deficit within its first financial year, indicating potential solvency and liquidity issues.

2. Key Concerns:

• Negative Net Assets (£13,176): The company’s liabilities exceed its assets, reflecting a net deficit in equity which raises concerns about its ability to meet long-term obligations.
• Severe Working Capital Deficit (£23,085): Current liabilities substantially exceed current assets, suggesting potential short-term liquidity problems and difficulties in meeting immediate creditors.
• Limited Operating History: Incorporated in July 2022 and with only one year of accounts, the company has a very limited track record to assess operational stability or financial performance trends.

3. Positive Indicators:

• No Overdue Filings: Both accounts and confirmation statements are up to date, indicating compliance with statutory obligations and good governance on regulatory matters.
• Micro-Entity Status: The company operates on a micro scale with only two employees, which may limit overheads and financial exposure.
• Industry Focus: Engaged in joinery installation and domestic construction, sectors with potential steady demand if managed well.

4. Due Diligence Notes:

• Investigate Causes of Negative Equity: Review detailed financial statements and directors’ reports to understand reasons behind the net liabilities, including any outstanding debts or losses.
• Cash Flow and Debt Profile: Examine cash flow statements and creditor aging to evaluate liquidity management and short-term payment obligations.
• Director Background: Assess the experience and track record of the sole director, Lawrence Owens, to gauge management capability and risk tolerance.
• Client and Contract Stability: Explore the company’s order book or contract pipeline to determine revenue visibility and operational sustainability.
• Contingent Liabilities or Guarantees: Check for any off-balance sheet liabilities or related party transactions that may affect financial health.