Company Number: SC721750

Analysis Date: 2025-07-20 16:47 UTC

1. Risk Rating: HIGH
   The company shows significant net liabilities (£15,566 negative shareholders' funds) and net current liabilities of £17,566, indicating solvency risks. As a micro-entity with a short trading history (incorporated less than two years ago) and no audit conducted, financial transparency is limited. The negative equity position and working capital deficit are concerning for meeting obligations.

2. Key Concerns:

• Solvency Risk: Net current liabilities and negative shareholders’ funds suggest the company may struggle to meet short-term debts.
• Liquidity Concerns: Current liabilities (£39,970) exceed current assets (£22,404), indicating potential cash flow problems.
• Operational Stability: Incorporated in 2022 with only 4 employees, the company has a very limited operating history and no profit and loss data disclosed, raising questions about ongoing viability.

3. Positive Indicators:

• Compliance: Accounts and confirmation statements are filed on time with no overdue filings.
• Ownership and Control: Single shareholder/director with complete control may enable swift decision-making.
• Asset Base: Although minimal, the company holds fixed assets (£2,000) and current assets which provide some cushion.

4. Due Diligence Notes:

• Obtain full profit and loss statements to assess profitability and cash flow trends.
• Verify the nature and timing of current liabilities to understand repayment obligations and creditor terms.
• Investigate business contracts, pipeline, and client base to assess revenue sustainability.
• Assess director’s background and financial capacity to support the company if needed.
• Confirm no contingent liabilities or disputes that could impact financial position.