Company Number: SC688982

Analysis Date: 2025-07-20 15:09 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, with persistent negative net current assets and very high current liabilities relative to current assets, indicating difficulty meeting short-term obligations.

2. Key Concerns:

• Negative Net Current Assets: The company shows net current liabilities of approximately £57,761 as of 29 February 2024, indicating working capital deficits and liquidity strain.
• Substantial Long-Term Creditors: Creditors falling due after more than one year remain high at £645,369, suggesting significant debt obligations that may pressure cash flows and solvency.
• Thin Equity Base with Fluctuations: Net assets moved from negative (£-2,221 in 2023) to a modest positive (£15,028 in 2024), but overall shareholders’ funds remain very low relative to liabilities, limiting financial resilience.

3. Positive Indicators:

• Asset Base Stability: Fixed assets remain stable at approximately £727,000, providing some underlying asset support.
• No Overdue Filings: The company is compliant with filing deadlines for both accounts and confirmation statements, indicating good regulatory adherence.
• Active Status with Single Director: The company is active and managed by a single named director with no reported conduct issues, reducing governance risk.

4. Due Diligence Notes:

• Investigate the nature and terms of the £645,369 long-term creditors to assess refinancing risk and covenant compliance.
• Clarify the working capital management strategies given persistent negative net current assets and low current assets.
• Review the company’s cash flow statements and forecasts (not provided here) to gauge liquidity trends and ability to service debt.
• Explore any contingent liabilities or related party transactions impacting financial stability.
• Examine the business model sustainability given a sole director and micro-entity scale with limited turnover data.