Company Number: SC777903

Analysis Date: 2025-07-29 14:17 UTC

1. Risk Rating: HIGH
   The company exhibits significant financial distress, reflected in net liabilities of £37,336 and negative net current assets of the same amount. The level of current liabilities (mainly director loans) far exceeds current assets, indicating poor solvency and liquidity positions for a newly incorporated entity.

2. Key Concerns:

• Negative Net Assets and Working Capital: The company’s liabilities exceed assets by over £37k, signaling an inability to meet short-term obligations from current assets.
• Concentration of Debt with Directors: Substantial current liabilities (£44,719) are loans from directors, which may indicate reliance on insider funding and potential liquidity risk if these loans are called in.
• No Operational Revenue or Employees: With zero employees and no reported turnover, the company’s operational sustainability is questionable, raising concerns about ongoing viability.

3. Positive Indicators:

• Compliance with Filings: Accounts and confirmation statements are up to date with no overdue filings, suggesting regulatory compliance and good governance practices.
• Clear Ownership and Control: The majority shareholder (Mrs. Maira Alyas) holds 75-100% control, which may allow for decisive management actions and potential capital injections if necessary.
• Exemption from Audit: As a small company under FRS 102 Section 1A, the accounts are prepared under standard accounting frameworks, providing some confidence in reported figures.

4. Due Diligence Notes:

• Investigate the nature and terms of director loans to assess the risk of withdrawal or restructuring and their impact on cash flow.
• Clarify the company’s business plan given the lack of employees and revenue; understand how it intends to generate cash flow and achieve operational stability.
• Confirm the absence of contingent liabilities or off-balance sheet obligations that could exacerbate solvency risk.
• Review management’s strategy and funding plans to address negative equity and working capital deficits.