Company Number: SC726861

Analysis Date: 2025-07-29 17:38 UTC

1. Risk Rating: HIGH
   The company shows persistent negative net current assets and shareholders’ funds over three years, indicating ongoing financial distress. The directors’ loan balance is substantial and unpaid, suggesting reliance on director funding without clear repayment plans.

2. Key Concerns:

• Solvency Risk: Net current liabilities of approximately £51k indicate the company cannot cover short-term obligations with current assets, raising solvency concerns.
• Dependence on Directors’ Loans: £346k loan from directors remains outstanding, interest-free, and repayable on demand, indicating potential liquidity risk if directors withdraw support.
• Lack of Operational Activity: No employees reported, and no detailed income statement provided, which limits assessment of operational performance and sustainability.

3. Positive Indicators:

• Healthy Cash Position: The company holds nearly £300k in cash, which mitigates immediate liquidity pressures despite current liabilities.
• Timely Filings: Accounts and confirmation statements are up to date, indicating compliance with regulatory requirements.
• Experienced Directors: Both directors are property investors with control over the company, suggesting familiarity with business risks.

4. Due Diligence Notes:

• Investigate the nature and terms of the directors’ loans and the company’s plan for repayment or refinancing.
• Obtain and review the full income statement or management accounts to understand revenue generation and profitability.
• Clarify the business model and operational activities given the SIC code is generic and no employees are reported.
• Review any off-balance sheet liabilities or contingent risks not disclosed in abridged accounts.