Company Number: SC722943

Analysis Date: 2025-07-20 16:57 UTC

1. Risk Rating: HIGH
   Justification: The company shows persistent negative net assets and shareholders’ funds since incorporation, with net liabilities increasing to £11,304 by the 2025 year-end. Current liabilities exceed current assets, producing negative working capital that worsened materially from £-680 in 2024 to £-11,289 in 2025. This indicates solvency stress and potential liquidity constraints.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The company has been operating with net liabilities since inception, reflecting accumulated losses or undercapitalization that raise questions about its ability to meet obligations.
• Negative Working Capital: Current liabilities surpass current assets by a significant margin, worsening over the last year, which suggests cash flow issues and difficulty covering short-term debts.
• Limited Operational Scale: The company employs only one person (the director), and the micro-entity status along with minimal fixed assets (£799) imply limited operational capacity and possibly restricted revenue generation or growth potential.

3. Positive Indicators:

• Compliance with Filings: The company is up to date with both accounts and confirmation statement filings, indicating adherence to regulatory requirements and no immediate governance red flags.
• Single Controlling Director: Ownership and control are centralized in one individual, which may facilitate quicker decision-making and responsiveness to financial challenges.
• No Signs of Insolvency Proceedings: The company is active and not in liquidation, administration, or receivership, suggesting ongoing operations despite financial difficulties.

4. Due Diligence Notes:

• Investigate Cash Flow and Funding Sources: Understand how the company is financing its negative working capital and whether there are external loans, director’s loans, or other support mechanisms.
• Review Profit & Loss Details: Although not filed, obtaining P&L accounts would clarify the operational performance and reasons behind accumulated losses.
• Assess Business Model and Pipeline: Given the SIC code (development of building projects), evaluate the pipeline of projects, contract wins, and prospects for future revenue to judge sustainability.
• Director’s Financial Support and Intentions: Given sole control by Mr. Stewart, assess his willingness and capacity to continue funding the business or implement turnaround strategies.