Company Number: SC694011

Analysis Date: 2025-07-29 16:09 UTC

1. Risk Rating: MEDIUM

Justification: The company shows a small net asset base (£611) and a negative net current asset position (£-903) as of the latest financial year end, indicating potential liquidity constraints. The existence of short-term creditors exceeding current assets signals some short-term solvency risk. However, the company is active, up to date with filings, and holds a small but positive equity position, reflecting some operational continuity.

2. Key Concerns:

• Negative working capital in the latest year (current liabilities £7,145 exceed current assets of £6,242), which could indicate cash flow pressure.
• Significant increase in current liabilities from £1,150 in 2023 to £7,145 in 2024 without corresponding current asset growth, raising questions about creditor payment terms or accruals.
• The company operates as a micro-entity with minimal share capital (£1) and limited fixed assets (£1,514), suggesting limited financial buffer to absorb shocks.

3. Positive Indicators:

• The company is active with no overdue statutory filings, indicating compliance with regulatory requirements.
• The net asset position, though small, has increased from £317 in 2023 to £611 in 2024, showing some growth in equity.
• The business has maintained at least one employee consistently, implying some operational stability.
• The director has been in place since incorporation with no reported disqualifications or governance issues.

4. Due Diligence Notes:

• Investigate the nature and terms of the increased current liabilities to understand the cause of the negative working capital.
• Review cash flow statements or bank records (if available) to assess liquidity and the company’s ability to meet short-term obligations.
• Clarify the business model and revenue streams in the development of building projects sector, including client concentration and payment cycles.
• Confirm absence of any contingent liabilities or off-balance sheet obligations that could further impact solvency.
• Monitor future filings and financial updates for any signs of deterioration or improvement in financial health.