Company Number: SC732801

Analysis Date: 2025-07-20 14:40 UTC

1. Risk Rating: MEDIUM

Justification: The company is active with recent accounts filed on time and does not show overdue filings, which is positive. However, the financial information reveals a significant decline in net assets and net current assets between 2023 and 2024, driven by increased liabilities and reduced cash balances. The company also carries finance lease obligations, which may pressure cash flows. These factors point to moderate solvency and liquidity risks.

2. Key Concerns:

• Declining Net Assets and Working Capital: Net assets decreased from £12,051 in 2023 to £6,134 in 2024, with net current assets dropping sharply from £8,690 to £1,013, indicating reduced financial buffer.
• Low Cash Reserves: Cash on hand declined from £17,967 to £6,595, potentially limiting short-term liquidity to meet immediate obligations.
• Finance Lease Liabilities: Obligations under finance leases remain material (£10,099 in 2024), increasing fixed financial commitments and reducing operational flexibility.

3. Positive Indicators:

• Timely Filing Compliance: Accounts and confirmation statements are up to date with no overdue filings, indicating good governance and regulatory compliance.
• Stable Ownership and Management: The sole director and controlling party, Robert William Hogg, has maintained consistent control since incorporation in 2022, which may support steady decision-making.
• Modest Employee Base: Employing two staff suggests a lean operational structure potentially aligned with the micro/small business scale, which can be advantageous for cost control.

4. Due Diligence Notes:

• Investigate Causes of Decline: Review detailed financials and management commentary to understand reasons behind the sharp drop in net assets and working capital, including any unusual expenses or revenue shortfalls.
• Assess Lease Obligations Impact: Evaluate the terms and duration of finance leases to determine future cash flow commitments and potential refinancing risks.
• Confirm Revenue and Profitability Trends: As turnover and profit/loss figures are not provided, obtain these to assess operational sustainability and margin stability.