Company Number: 13786699

Analysis Date: 2025-07-29 17:16 UTC

1. Risk Rating: HIGH
   The company's financial data reveals critical concerns about its solvency and liquidity. With net current assets of only £100 and current liabilities nearly matching current assets (£21,462 vs £21,562), the business shows minimal working capital to meet short-term obligations. The director's loan account significantly contributes to liabilities, indicating reliance on director funding rather than operational cash flow.

2. Key Concerns:

• Minimal Working Capital: Net current assets stand at a mere £100, effectively indicating the company is operating at break-even with extremely limited liquidity buffer.
• Director Loan Liability: The £21,462 owed to director Iain Shiel Purves suggests dependence on shareholder funding rather than generated cash flows to finance operations, posing a risk if such support ceases.
• Lack of Financial Depth and Scale: As a micro-entity incorporated recently (Dec 2021) with only one employee and minimal asset base, the company has limited operational scale and financial resilience.

3. Positive Indicators:

• Current Compliance: The company is active and up to date with all filing requirements, demonstrating regulatory compliance and no immediate governance red flags.
• Stable Shareholder Structure: Two PSCs with clear ownership and control, reducing complexity in governance.
• No Overdue Accounts or Returns: This indicates sound administrative discipline.

4. Due Diligence Notes:

• Examine Director Loan Terms: Investigate the nature, terms, and repayment plan of the director loan to assess sustainability and potential risk to creditors.
• Review Business Model and Revenue Streams: Obtain detailed income statements and cash flow forecasts to evaluate operational viability beyond balance sheet snapshots.
• Assess Future Funding Plans: Clarify how the company plans to improve liquidity and solvency, including any external financing or anticipated revenue growth.
• Confirm No Pending Liabilities: Verify if there are any contingent liabilities or off-balance sheet obligations that might affect financial stability.