Company Number: SC685614

Analysis Date: 2025-07-29 13:53 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits significant negative net current assets and shareholders' funds, indicating insolvency risk. The liabilities exceed current assets by a substantial margin (£28,943 deficit), with minimal operational history and no evidence of profitability or positive cash flow.

2. Key Concerns:

• Negative working capital: Current liabilities (£41,666) far exceed current assets (£12,723) as of January 2024, suggesting liquidity problems.
• Negative shareholder equity: Shareholders' funds are negative (£28,943), indicating accumulated losses or funding shortfalls.
• Minimal scale and operational track record: The company is micro-sized, established in 2021, with no reported revenue or profit data, and only one employee on average during the last financial year, raising concerns about business sustainability.

3. Positive Indicators:

• Up-to-date filings: The company has filed accounts and confirmation statements on time, indicating compliance with statutory requirements.
• Active status: The company remains registered and active with no signs of liquidation or administration.
• Industry sector: Operating in construction of domestic buildings (SIC 41202), a sector that can have growth potential depending on market conditions.

4. Due Diligence Notes:

• Investigate cash flow and funding sources: Understand how the company is financing operations given the negative working capital and shareholder deficit.
• Review business plan and contracts: Assess whether the company has secured contracts or revenue streams to improve financial stability.
• Examine director and shareholder background: Confirm no director disqualifications or governance issues; understand who controls and supports the company financially.
• Request management accounts or forecasts: To better evaluate operational viability beyond the limited historical data.