Company Number: SC717101

Analysis Date: 2025-07-20 17:06 UTC

1. Risk Rating: MEDIUM
   The company demonstrates marginal net current assets and very low net asset value, which suggests limited financial cushion. While it is not currently overdue on filings and is active, the thin working capital position and modest equity base imply a moderate risk profile typical of a micro-sized service business.

2. Key Concerns:

• Tight Liquidity Position: Net current assets at £198 in 2023, down from £515 in 2022, indicates very limited short-term liquidity buffer to manage unexpected cash flow needs.
• Low Capitalisation: Share capital of only £20 and net assets of £198 reflect minimal equity investment and limited capacity to absorb losses or secure external financing.
• Reliance on Director Loans: Over £3,500 owed to directors suggests dependency on related-party financing, which may pose risks if the director withdraws support.

3. Positive Indicators:

• No Overdue Filings: Accounts and confirmation statements are submitted on time, evidencing regulatory compliance and good governance practices.
• Stable Operations: The business has maintained a steady employee count (3) and appears operational since incorporation in late 2021, indicating ongoing trading activity.
• Owner-Managed Structure: The sole director and 75-100% shareholder alignment may facilitate agile decision-making and strong operational control.

4. Due Diligence Notes:

• Investigate the terms and sustainability of director loans, including repayment schedule and whether these loans are formalized.
• Review cash flow statements and bank transactions to assess real-time liquidity beyond balance sheet snapshots.
• Explore the business model and revenue trends to evaluate operational viability given low reserves and asset base.
• Confirm absence of contingent liabilities or off-balance-sheet exposures that may affect solvency.
• Validate that no director disqualifications or regulatory sanctions exist for the controlling person.