Company Number: SC655227

Analysis Date: 2025-07-20 16:38 UTC

1. Risk Rating: HIGH
   The company exhibits a significant deterioration in liquidity and net asset position as of the latest financial year, with net current liabilities and a sharp decline in shareholders’ funds indicating elevated solvency risk.

2. Key Concerns:

• Liquidity Deterioration: The net current assets moved from a positive £657 in 2023 to a negative £3,384 in 2024, with current liabilities exceeding current assets. Cash reserves also declined slightly.
• Net Assets Decline: Shareholders’ funds dropped from £8,120 in 2023 to just £872 in 2024, a near 90% reduction, signaling possible losses or asset impairments impacting equity.
• Increasing Creditors: Current liabilities increased by over £2,000, primarily VAT and trade creditors, raising concerns about the company’s ability to meet short-term obligations promptly.

3. Positive Indicators:

• Compliance: The company is up-to-date with filing obligations for both accounts and confirmation statements, indicating regulatory compliance and governance diligence.
• Stable Director and Location: Since incorporation in 2020, the company has maintained the same director and registered office, suggesting operational continuity.
• Employee Growth: The average number of employees rose from 6 to 10 in the latest year, which may reflect business expansion or increased operational activity.

4. Due Diligence Notes:

• Investigate the cause of the dramatic decline in net assets and working capital, including any exceptional charges, losses, or asset write-downs reported outside the summary data.
• Review cash flow statements and management commentary (if available) for signs of ongoing liquidity stress or delayed creditor payments.
• Examine VAT and tax creditor aging to assess any potential regulatory risk or impending enforcement action.
• Assess the sustainability of the business model in the public houses and bars sector given recent financial strain and broader market conditions.
• Confirm absence of director disqualifications or adverse legal actions given sole director status.