Company Number: SC698126

Analysis Date: 2025-07-20 14:08 UTC

1. Risk Rating: MEDIUM
   The company shows strong net current assets and net asset positions relative to its size, indicating solid balance sheet strength. However, the sharp drop in turnover in the latest financial year and relatively low revenue levels raise concerns about operational sustainability and underlying business performance.

2. Key Concerns:

• Significant turnover decline from £207k in 2023 to £35k in 2024, suggesting loss of clients or business contraction.
• High tax expense (£5,618) relative to turnover and profit margin may indicate potential cash flow strain.
• Dependence on a single director and one employee, which may pose operational and succession risks.

3. Positive Indicators:

• Strong net current assets of £182k far exceed current liabilities, reflecting good short-term liquidity.
• Net assets and shareholder funds remain stable around £187k, indicating no deterioration in equity.
• No overdue filings and compliance with all statutory deadlines, evidencing good regulatory governance.

4. Due Diligence Notes:

• Investigate reasons behind the sharp turnover decline in 2024 and whether this is a temporary issue or a structural problem.
• Review cash flow statements and tax payment history to assess liquidity impact of tax charges.
• Evaluate business model sustainability given minimal employee base and reliance on a single director.
• Confirm absence of contingent liabilities or off balance sheet exposures beyond those disclosed.