Company Number: SC733351

Analysis Date: 2025-07-20 16:37 UTC

1. Risk Rating: HIGH
   The company consistently reports negative net current assets and net assets, indicating an ongoing deficit position and inability to meet short-term liabilities with available current assets. This signals significant solvency risk.

2. Key Concerns:

• Persistent Negative Working Capital: The net current liabilities have increased from approximately £5,276 in 2022 to £7,804 in 2025, showing worsening liquidity.
• Negative Shareholders' Funds: The shareholder equity remains negative and deteriorating, reaching -£7,804 in the latest accounts, which reflects accumulated losses and potential insolvency risk.
• Minimal Scale and Operational Capacity: With only one employee on average and classification as a micro-entity, operational scale is very limited, which may affect sustainability and ability to generate sufficient cash flow.

3. Positive Indicators:

• Compliance with Filing: The company is current with both accounts and confirmation statement filings, indicating adherence to regulatory requirements.
• No Indication of Insolvency Proceedings: The company is active and not in liquidation, administration, or receivership.
• Exemption from Audit: As a micro-entity, the company benefits from reduced compliance costs which may be appropriate at its scale.

4. Due Diligence Notes:

• Review the company’s cash flow statements or bank statements (if available) to assess liquidity beyond balance sheet figures.
• Investigate the nature of the company’s liabilities to understand if any are overdue or at risk of immediate demand.
• Clarify the business model and revenue streams given the SIC code "Unlicensed carrier" to assess operational viability.
• Assess director background and related party transactions given the sustained losses and negative net assets.
• Confirm any contingent liabilities or off-balance sheet commitments that may exacerbate financial stress.