Company Number: SC677513

Analysis Date: 2025-07-29 20:22 UTC

1. Risk Rating: LOW
   The company demonstrates a stable net asset position with positive working capital across the last reported years. There are no overdue filings or indications of regulatory non-compliance. The business appears solvent with sufficient current assets to cover liabilities, suggesting low immediate financial risk.

2. Key Concerns:

• Declining net assets and net current assets over the last two years may indicate gradual erosion of equity and working capital, warranting monitoring.
• Very small scale operations (micro-entity status and only 2 employees) may limit operational resilience and growth potential.
• Lack of audit and limited financial disclosures restrict visibility into detailed financial performance and risks.

3. Positive Indicators:

• Current liabilities are well covered by current assets, with net current assets remaining positive (£36k in 2024).
• No overdue statutory filings and timely submission of accounts and confirmation statements indicate good governance compliance.
• Ownership and control are consolidated under a single experienced director, simplifying decision-making and accountability.
• The company has maintained positive net assets throughout its history, evidencing solvency.

4. Due Diligence Notes:

• Investigate reasons behind the declining net assets and net current assets from 2022 to 2024 to assess whether this trend could continue.
• Review the company’s revenue streams, profitability, and cash flow statements if available, since micro-entity accounts omit profit and loss details.
• Confirm the director’s capacity and plans for business growth or risk mitigation given the small employee base and limited capital.
• Verify that there are no contingent liabilities or off-balance sheet obligations not captured in the micro-entity accounts.
• Assess the company’s client base, contracts, and market position within management consultancy to gauge operational sustainability.