Company Number: SC676532

Analysis Date: 2025-07-20 13:29 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits persistent negative net assets and net current liabilities over multiple years, indicating significant solvency and liquidity challenges. Despite being active and filing on time, the financial position remains weak with no equity buffer.

2. Key Concerns:

• Negative Net Assets and Working Capital Deficit: The company’s net assets remain negative at £3,133 (2023), improving from worse prior years but still below zero; net current liabilities stand at £65,197, signaling potential inability to meet short-term obligations.
• Minimal Cash Holdings: Cash at bank is only £65 (2023), which is very low relative to current liabilities, raising concerns about immediate liquidity and operational cash flow management.
• Limited Equity and Capital Base: Share capital is nominal (£32), and accumulated retained losses have reduced shareholders’ funds significantly, indicating ongoing losses or insufficient capital injections to support operations.

3. Positive Indicators:

• Consistent Timely Filings: The company is compliant with filing deadlines for accounts and confirmation statements, showing good regulatory discipline.
• Ongoing Operations: The company remains active since 2020 with at least one employee, suggesting some operational activity rather than dormancy.
• Asset Base: The company holds tangible and intangible assets valued at over £63,000, which could potentially be leveraged or sold to improve liquidity if necessary.

4. Due Diligence Notes:

• Investigate the nature and recoverability of debtors (£1,297) to assess realistic short-term cash inflows.
• Review the company’s cash flow statements or bank statements (not provided) to understand operational cash generation or reliance on external funding.
• Examine management plans or external financing arrangements aimed at addressing the working capital deficit and solvency concerns.
• Assess the business model viability given the industry mix (engineering consultancy, maritime freight and passenger transport, marine fishing) and any recent operational developments.
• Confirm any contingent liabilities or provisions beyond those reported (£1,164) that could impact financial stability.
• Clarify director and shareholder intentions regarding future funding or restructuring given persistent losses and negative equity.