Company Number: SC682811

Analysis Date: 2025-07-29 14:42 UTC

1. Risk Rating: HIGH
   The company exhibits persistent negative net assets and net current liabilities over multiple years, indicating ongoing solvency concerns. The lack of audit and minimal disclosures typical for a micro-entity limit insight, but the financial position suggests significant financial distress.

2. Key Concerns:

• Consistent negative net assets and net current assets: The company has reported net liabilities around £9,800 for the past three years, suggesting an inability to cover short-term obligations from current assets.
• Minimal share capital (£10) relative to liabilities: This low equity base provides little buffer against losses or creditor claims, raising solvency risk.
• Single employee and limited operational data: The very small scale, coupled with negative equity, raises questions on operational sustainability and the ability to generate sufficient cash flows.

3. Positive Indicators:

• Compliance with filing requirements: Accounts and confirmation statements are submitted on time, indicating regulatory compliance and good governance in this regard.
• No indication of liquidation or administration: The company remains active and not under formal insolvency proceedings.
• Directors appear stable: Two directors have been in place since incorporation with no disqualifications noted.

4. Due Diligence Notes:

• Investigate the nature and timing of the company’s liabilities to assess if any are overdue or subject to enforcement action.
• Confirm ongoing operational activity and revenue streams, given the small employee count and negative working capital.
• Review director plans or strategies to restore solvency or recapitalise the business.
• Assess any off balance sheet commitments or guarantees not disclosed in the micro-entity accounts.
• If available, consider obtaining management accounts or cash flow forecasts for a more current financial assessment.