Company Number: SC706906

Analysis Date: 2025-07-20 15:38 UTC

1. Risk Rating: MEDIUM
   The company shows a modest positive net asset position, but limited turnover and negative net current assets indicate potential liquidity constraints. Being a micro-entity with minimal employees and relatively recent incorporation adds to operational risk.

2. Key Concerns:

• Negative net current assets (£-897) as of the latest period suggest short-term liquidity issues that may challenge meeting immediate obligations.
• Very low turnover (£6,939) relative to total assets indicates limited trading activity and potential dependence on capital injections rather than operating cash flow.
• Recent change of director and majority ownership concentrated in one individual may pose governance and continuity risks.

3. Positive Indicators:

• Positive net assets (£4,824) provide some buffer against insolvency risk despite working capital pressures.
• No overdue filings or compliance issues noted, reflecting good regulatory standing.
• Operating in the wholesale of metals and metal ores sector, which can have steady demand if well managed.

4. Due Diligence Notes:

• Verify cash flow and working capital management to assess ability to meet short-term liabilities.
• Investigate the business model and revenue generation strategy given the very low turnover relative to assets.
• Clarify reasons and impact of director change in June 2025 and confirm continuity plans.
• Review any off-balance sheet commitments or contingent liabilities not disclosed.
• Confirm the status and transparency of related party transactions given concentrated ownership.