Company Number: SC676957

Analysis Date: 2025-07-29 14:03 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency risk due to negative net asset values and large creditor balances exceeding assets. The financial data indicates sustained and increasing liabilities, which raises questions about the company’s ability to meet its long-term obligations.

2. Key Concerns:

• Negative Shareholders Funds: Net assets decreased from £61,808 positive in 2022 to negative £17,386 in 2023, signaling erosion of equity and financial distress.
• High Creditors: Creditors falling due after more than one year total £383,805 in 2023, which is substantially higher than current assets and fixed assets combined, suggesting heavy leverage or deferred payments.
• Declining Fixed Assets and Current Assets: Fixed assets decreased from £488,042 in 2022 to £361,781 in 2023, and current assets sharply declined from £29,636 to £4,638, indicating possible asset disposals or deteriorating liquidity.

3. Positive Indicators:

• Compliance with Filings: The company is up to date with both accounts and confirmation statement filings, demonstrating regulatory compliance and governance discipline.
• Sole Director Control: The single director and 75-100% owner, Mr. Robin John Gardner, provides clear leadership and control which can be advantageous for swift decision-making.
• Micro-entity Category: The company’s micro-category status implies simplified reporting, which may reduce administrative overhead.

4. Due Diligence Notes:

• Investigate Nature and Terms of Long-term Creditors: Detailed review of creditor agreements, repayment schedules, and whether these liabilities are secured or contingent.
• Cash Flow and Profitability Analysis: Review management accounts or cash flow statements not publicly filed to understand operational cash generation and liquidity position.
• Asset Valuations and Impairments: Confirm if fixed assets are carried at fair value and assess any recent impairments or disposals impacting asset base.
• Director’s Statement and Business Plan: Request commentary from management regarding turnaround plans, funding arrangements, or restructuring efforts to mitigate negative equity.