SC & EO MCGRORY LTD

Executive Summary

SC & EO McGrory Ltd exhibits significant solvency and liquidity risks, with consistent negative net assets and working capital deficits over multiple years. While regulatory compliance is maintained and the company remains active, its small scale and financial position raise concerns over operational sustainability. Further due diligence on cash flows, liabilities, and business fundamentals is recommended before investment consideration.

SC & EO MCGRORY LTD - Analysis Report

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.