Company Number: SC761573

Analysis Date: 2025-07-29 19:22 UTC

1. Risk Rating: HIGH
   The company shows significant negative net current assets and net liabilities for the year ending 31 March 2024, indicating potential solvency issues despite being newly incorporated. This raises concerns about its ability to meet short-term obligations.

2. Key Concerns:

• Negative Net Current Assets: Current liabilities (£15,549) far exceed current assets (£729), resulting in a net current liability position of -£14,820. This suggests liquidity problems and difficulty in covering immediate debts.
• Negative Net Assets and Shareholders’ Funds: The company reports net assets and shareholder funds of -£14,633, implying that total liabilities exceed total assets, a red flag for solvency risk.
• Short Operating History and Limited Financial Data: Incorporated in March 2023 with only one set of micro-entity accounts filed, there is insufficient financial history to assess operational stability or trends.

3. Positive Indicators:

• No Overdue Filings: Both accounts and confirmation statements are filed on time, indicating compliance with statutory requirements.
• Clear Ownership and Control: The sole director and 100% shareholder is identified, suggesting clarity in governance and decision-making.
• Micro-Entity Status: The small scale of operations (average 4 employees) and micro-entity reporting reduces regulatory complexity and cost burden.

4. Due Diligence Notes:

• Verify the nature and timing of the liabilities causing the negative net current assets, including any related party debts or short-term loans.
• Investigate the business plan and cash flow projections to understand how the director intends to address the liquidity shortfall.
• Assess the director’s background and capacity to manage and finance the business, especially given the sole control and potential concentration risk.
• Confirm whether the company has any secured creditors or contingent liabilities not reflected in the accounts.