Company Number: SC730074

Analysis Date: 2025-07-20 12:22 UTC

1. Risk Rating: MEDIUM
   The company shows positive net assets and net current assets, indicating solvency. However, the reduction in net assets and net current assets in the latest financial year, combined with relatively high current liabilities—particularly corporation tax—warrants caution. The small share capital and limited operational history also contribute to a medium risk profile.

2. Key Concerns:

• Declining Net Assets and Working Capital: Net assets decreased from £11,477 (2024) to £7,242 (2025), and net current assets fell nearly 50%, suggesting some erosion of financial buffer.
• High Corporation Tax Liability: Corporation tax payable is a material portion of current liabilities (£18,622 of £20,349), which could impact liquidity if not managed carefully.
• Limited Operating History and Scale: Incorporated in 2022 and with minimal share capital (£10), the company is still in early stages, increasing operational risk and limiting financial resilience.

3. Positive Indicators:

• Positive Net Current Assets: Despite declines, net current assets remain positive at £4,348, indicating the company can meet short-term obligations.
• Consistent Debtor Balances: Trade debtors remain stable (~£10,500), suggesting ongoing business activity and revenue generation.
• No Overdue Filings: Accounts and confirmation statements are filed on time, reflecting regulatory compliance and good governance.

4. Due Diligence Notes:

• Review cash flow statements and management accounts to assess liquidity trends beyond balance sheet snapshots.
• Investigate the nature and timing of corporation tax liabilities to understand cash outflow risk.
• Understand business model sustainability given the public relations industry classification and asset composition.
• Verify director backgrounds and any related party transactions, especially given director loan accounts on the balance sheet.