Company Number: SC678260

Analysis Date: 2025-07-20 18:28 UTC

1. Risk Rating: MEDIUM

The company shows a significant decline in net assets from £100,055 in 2023 to £19,279 in 2024, primarily due to a large reduction in current assets. While it remains solvent with positive net assets and net current assets, the sharp drop in liquidity raises moderate concern regarding short-term obligations and operational cash flow. The micro-entity reporting and exemption from audit limit the depth of financial assurance.

2. Key Concerns:

• Liquidity Reduction: Current assets fell from £151,636 to £69,399, reducing net current assets from £95,495 to £11,809, indicating potential cash flow or working capital pressures.
• Profitability and Sustainability: Absence of a filed profit and loss account limits insight into operational performance; the substantial asset and equity decline suggests a possible loss-making period.
• Concentration of Control: One individual holds 75-100% ownership and voting rights, posing governance and succession risks.

3. Positive Indicators:

• Solvency Maintained: Net assets remain positive at £19,279, showing the company can currently meet liabilities.
• Compliance: No overdue accounts or confirmation statements, indicating strong regulatory compliance.
• Business Activity: Increased average employee count from 1 to 4 in the latest year suggests ongoing operational scaling.

4. Due Diligence Notes:

• Obtain and review the profit and loss account or management accounts to assess profitability, revenue trends, and cost structure.
• Investigate reasons behind the sharp decline in current assets—whether due to reduced receivables, cash withdrawals, or other factors.
• Assess cash flow forecasts and any contingent liabilities not reflected in the accounts.
• Review director backgrounds and governance practices given the concentrated ownership and control.
• Confirm the nature and stability of client contracts or revenue streams given the company’s activity in consulting-related SIC codes.