Company Number: SC724354

Analysis Date: 2025-07-19 12:23 UTC

1. Risk Rating: MEDIUM
   The company shows a decline in net assets and net current assets over the last financial year, which may indicate emerging liquidity pressures. However, it remains solvent with positive net assets and no overdue filings.

2. Key Concerns:

• Significant reduction in net current assets from £27,205 (2024) to £2,004 (2025), indicating potential liquidity constraints.
• Current liabilities increased notably to £36,726 in 2025, exceeding current assets of £23,729, which could impact short-term cash flow.
• The company is very young (incorporated 2022) and small (micro-entity category), which typically entails limited financial history and potentially volatile earnings.

3. Positive Indicators:

• The company remains active and compliant with filing deadlines (accounts and confirmation statements up to date).
• Directors are architects by occupation, aligned with primary SIC code 71111 (architectural activities), suggesting relevant expertise.
• Shareholders’ funds remain positive at £4,540, showing the company is not insolvent.
• Stable employee base (average 3 employees) indicating operational continuity.

4. Due Diligence Notes:

• Investigate the cause of the sharp reduction in net current assets and increase in current liabilities in the latest year—are these due to delayed receivables, increased payables, or other operational issues?
• Review cash flow statements if available for more detailed liquidity analysis.
• Assess revenue trends and profitability to understand whether the decline in working capital is a one-off or a symptom of deteriorating business performance.
• Confirm any contingent liabilities or off-balance-sheet obligations not reflected in the accounts.
• Verify directors’ background for any regulatory or conduct flags, though none are apparent from current data.