SEAFIELD DEVELOPMENTS (SCOTLAND) LTD

Executive Summary

Seafield Developments (Scotland) Ltd exhibits high solvency and liquidity risk with persistent negative net assets and worsening working capital deficits since incorporation. While regulatory compliance is maintained and control is consolidated under a single director, the company’s financial position and operational scale raise concerns about its ability to sustain ongoing activities without additional funding or significant improvement in trading performance. Further detailed financial and operational due diligence is recommended to assess viability.

SEAFIELD DEVELOPMENTS (SCOTLAND) LTD - Analysis Report

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.