Company Number: SC697752

Analysis Date: 2025-07-29 18:57 UTC

1. Risk Rating: MEDIUM

The company shows a significant deterioration in net current assets over the last two years, which raises concerns about liquidity and operational stability. However, it remains solvent with positive equity and no overdue filings.

2. Key Concerns:

• Liquidity Decline: Net current assets have dropped sharply from £10,256 in 2023 to just £11 in 2025, indicating very tight working capital and potential difficulties in meeting short-term obligations promptly.
• Asset Reduction: Fixed assets have decreased steadily from £4,945 in 2021 to £3,035 in 2025, potentially indicating asset disposals or underinvestment in long-term operational capacity.
• Concentration of Control: One individual holds 75-100% of shares and voting rights, which may pose governance risks if decisions lack independent oversight.

3. Positive Indicators:

• Solvency Maintained: The company still reports positive shareholders’ funds (£3,046 as of May 2025), indicating the business remains solvent with assets exceeding liabilities.
• Compliance: No overdue accounts or confirmation statement filings; the company is current with statutory compliance.
• Stable Employment: The average number of employees increased slightly from 2 to 3, suggesting modest operational activity continuity.

4. Due Diligence Notes:

• Investigate the cause of the sharp decline in net current assets and current assets between 2023 and 2025, including any changes in debtor collections, stock levels, or cash reserves.
• Review profit and loss trends, cash flow statements, and any notes on asset disposals or impairments that may explain the fall in fixed assets and working capital.
• Assess the impact of concentrated ownership on company decision-making and the presence (if any) of external advisory or oversight mechanisms.
• Confirm the company’s revenue and profitability trends to evaluate operational sustainability beyond balance sheet snapshots.