Company Number: SC665007

Analysis Date: 2025-07-20 14:09 UTC

1. Risk Rating: MEDIUM
   The company shows a moderate level of solvency risk due to net current liabilities and reliance on director loans, despite positive shareholders’ funds. The micro-entity status limits the detail available, restricting a full risk assessment.

2. Key Concerns:

• Negative net current assets (£38,453 current assets vs. £52,673 current liabilities), indicating potential short-term liquidity pressure.
• Significant related party loan (£23,143) from a director, interest-free and repayable on demand, which may mask external financing needs and affect cash flow stability.
• Declining fixed assets from £66,510 (previous year) to £55,440, possibly reflecting asset disposals or lack of reinvestment, which could impact operational capacity.

3. Positive Indicators:

• Shareholders’ funds remain positive and relatively stable (£41,220), showing retained capital and net asset backing.
• Compliance with filing deadlines and no overdue accounts or confirmation statements, indicating good regulatory adherence.
• Ownership and control concentrated with a director who is also the major shareholder, potentially allowing for swift decision-making.

4. Due Diligence Notes:

• Review cash flow statements or management accounts to understand liquidity dynamics beyond balance sheet snapshots.
• Investigate the nature and terms of the director’s loan to assess implications for financial sustainability and governance.
• Clarify reasons behind fixed asset decline and confirm if operational capacity is maintained or affected.
• Consider obtaining more detailed financial information, given the micro-entity filing exemption limits transparency.