Company Number: SC681114

Analysis Date: 2025-07-29 20:41 UTC

1. Risk Rating: HIGH
   The company shows a persistent negative net asset position, indicating insolvency risk. The liabilities exceed the total assets by approximately £9,700 in 2023, worsening from £20,345 the prior year. This signals that the company’s obligations outweigh its resources, raising solvency concerns.

2. Key Concerns:

• Negative Net Assets: The balance sheet shows total liabilities exceeding assets, a strong indicator of financial distress.
• Working Capital Deficit: Current liabilities (£236,787) significantly exceed current assets (£11,615), implying liquidity issues to meet short-term obligations.
• No Significant Revenue or Cash Generation Evidence: The company operates in real estate management but shows minimal current assets and no increase in fixed assets, suggesting limited operational activity or growth.

3. Positive Indicators:

• Compliance: The company is up to date with accounts and confirmation statement filings, indicating regulatory compliance and good governance practices.
• Low Employee Count: With only one employee, the company’s cost base may be low, reducing cash burn risk.
• Stable Fixed Assets: Fixed assets remain constant at £215,470, indicating some tangible asset base that might be leveraged or sold if needed.

4. Due Diligence Notes:

• Investigate the nature and recoverability of fixed assets valued at £215,470 to assess their liquidity and actual value.
• Review detailed cash flow statements and any off-balance sheet liabilities or contingent liabilities.
• Clarify revenue streams, contracts, or client base to evaluate operational sustainability.
• Explore director’s plans or restructuring strategies addressing the negative equity situation.
• Confirm whether the company has access to external financing or shareholder support to cover shortfalls.