Company Number: SC701471

Analysis Date: 2025-07-20 17:28 UTC

1. Risk Rating: HIGH
   The company shows a significant negative net asset position (£-5,315 at 30 June 2024), indicating insolvency on a balance sheet basis. Current liabilities exceed current assets by a wide margin (£8,336 vs £2,848), reflecting liquidity concerns. The company is a micro-entity with limited financial buffers and no audit, increasing uncertainty around financial stability.

2. Key Concerns:

• Negative Net Assets: The company’s net liabilities position is a red flag for solvency risk. It suggests the company’s obligations exceed its resources.
• Working Capital Deficit: Substantial current liabilities compared to current assets imply difficulty in meeting short-term obligations without external financing or asset sales.
• Limited Financial Disclosure and Size: As a micro-entity, filings are abridged with limited detail. This restricts full assessment of cash flow, profitability, and operational trends, increasing risk from information gaps.

3. Positive Indicators:

• No Overdue Filings: The company has submitted accounts and confirmation statements on time, indicating compliance with statutory requirements.
• Stable Employee Count: Retaining 6 employees over the last two years suggests some operational stability at the workforce level.
• Active Online Presence: The company maintains a current website with contact details, supporting ongoing commercial activity.

4. Due Diligence Notes:

• Profit and Loss Data: Seek detailed income statement and cash flow information to understand profitability and liquidity trends, currently unavailable due to micro-entity abridgement.
• Director and Shareholder Background: Investigate current director’s experience and the PSC’s ongoing involvement, especially given the founder’s resignation and control concentration.
• Creditors and Debt Structure: Clarify the nature and terms of current liabilities to assess refinancing risks and creditor relationships.
• Future Business Plans: Understand management’s strategy to address the negative equity and liquidity shortfall to gauge operational sustainability.