Company Number: SC730684

Analysis Date: 2025-07-29 15:42 UTC

1. Risk Rating: LOW

The company demonstrates a stable financial position with positive net current assets and net assets over the last reported years. There are no overdue filings or signs of regulatory non-compliance, and the company is active without liquidation or administration status.

2. Key Concerns:

• Declining net assets and net current assets from 2024 to 2025: Net assets decreased from £6,282 in 2024 to £3,897 in 2025, and net current assets reduced from £5,417 to £3,748, which may indicate some erosion of financial buffers.
• Very small scale of operations: As a micro-entity with only one employee and minimal fixed assets, the company’s operational scale is limited, potentially exposing it to risks from loss of key personnel or single-client dependence (not verifiable from current data).
• Concentrated control: The sole director and 100% shareholder is also the only person with voting rights and director appointment power, which can present governance risks due to lack of checks and balances.

3. Positive Indicators:

• Consistent compliance: No overdue accounts or confirmation statements and timely filing indicate good regulatory compliance.
• Positive working capital: Net current assets remain positive, suggesting the company can meet short-term liabilities with current assets.
• Stable operational base: The company has been active since incorporation in 2022, with continuity in directorship and no adverse status like liquidation or administration.
• Clear industry focus: SIC codes indicate engagement in specialised design and IT consultancy/software development, sectors with growth potential.

4. Due Diligence Notes:

• Investigate the cause of the decline in net assets and working capital in the most recent year to assess if this is a one-off or trend.
• Review client concentration and revenue sources to understand operational risk given the micro scale.
• Consider obtaining more detailed profit and loss information (not filed publicly) to assess profitability and cash flow.
• Examine director and shareholder background for any related party transactions or potential conflicts given sole control.
• Confirm ongoing business plans and financial forecasts to assess sustainability beyond historical data.