Company Number: SC681149

Analysis Date: 2025-07-29 20:43 UTC

1. Risk Rating: HIGH
   The company exhibits significant and increasing net liabilities and negative net current assets, indicating solvency and liquidity risks. The share capital is minimal, and retained losses are substantial for a micro-entity incorporated only in late 2020.

2. Key Concerns:

• Persistent and worsening net liabilities: The net liabilities have grown from -£644 in 2020 to -£1,300 in 2023, signaling ongoing financial distress.
• Negative working capital: Current liabilities exceed current assets by £400 in 2023, raising doubts about the company's ability to meet short-term obligations.
• Minimal share capital and equity buffer: £100 share capital with shareholders' funds negative at -£1,300 suggest inadequate capitalisation and potential insolvency risk.

3. Positive Indicators:

• Compliance and governance: The company is active, up to date with filings, including accounts and confirmation statements, indicating regulatory compliance.
• Stable director: The sole director has been in position since incorporation without publicly noted disqualifications or governance issues.
• Micro-entity status: The company benefits from simplified filing requirements, which may reduce administrative burden.

4. Due Diligence Notes:

• Investigate cash flow statements and any off-balance-sheet liabilities to understand liquidity beyond the balance sheet snapshot.
• Review business model viability and revenue trends, as financials show no profit and continuous losses.
• Assess creditor exposure and terms, especially since current liabilities remain high relative to assets.
• Confirm whether any related party transactions or capital injections are planned to improve solvency.
• Evaluate the reason for accruals and deferred income (£900 in 2023) and their impact on cash flow.
• Consider the impact of the freight transport market conditions on the company’s operational prospects.