Company Number: SC676234

Analysis Date: 2025-07-29 13:21 UTC

1. Risk Rating: HIGH
   The company shows a significant deterioration in net assets from £947 in 2023 to negative £2,632 in 2024. Current liabilities exceed current assets, and there are material long-term creditors, indicating possible solvency concerns.

2. Key Concerns:

• Negative net assets and shareholders’ funds in 2024 suggest the company is technically insolvent on a balance sheet basis.
• Sharp decline in current assets (from £7,808 to £1,176) alongside increased creditors falling due after more than one year (from £4,051 to £2,868) signals liquidity stress and possible cash flow difficulties.
• Average employee count dropped from 2 in 2023 to zero in 2024, raising questions about operational continuity and business sustainability.

3. Positive Indicators:

• The company remains active and has filed accounts and confirmation statements on time, suggesting compliance with statutory obligations.
• The company operates within a defined niche (electrical installation and building completion) with an active website and contact details, indicating ongoing commercial presence.
• Director has been consistent since incorporation, with no indication of disqualifications or governance issues from available data.

4. Due Diligence Notes:

• Investigate reasons for the substantial decline in net assets and current assets in 2024, including any one-off charges or write-downs.
• Review cash flow statements and creditor aging to assess liquidity and the risk of default or creditor enforcement action.
• Clarify operational status given zero employees reported in 2024—determine if the business is trading, dormant, or in distress.
• Confirm whether the company has any contingent liabilities or undisclosed debts not apparent from micro-entity accounts.
• Assess the status and terms of long-term creditors due after more than one year for potential refinancing or restructuring needs.