Company Number: SC717086

Analysis Date: 2025-07-20 17:18 UTC

1. Risk Rating: LOW

The company demonstrates a positive net current asset position and growing net assets over the last two years, indicating an improving financial position. There are no overdue filings or signs of regulatory non-compliance. The business is small and relatively young but shows no evident immediate financial distress.

2. Key Concerns:

• Small Scale and Limited Financial History: Incorporated in late 2021 with micro-entity accounts, the company’s limited operational history and small size could constrain its resilience to market shocks.
• Reduction in Workforce: The average number of employees declined from 10 in 2022 to 8 in 2023, which might signal operational challenges or cost-cutting measures impacting business sustainability.
• Concentration of Control: One individual holds 75-100% shareholding and voting rights, which may present governance risks related to decision-making concentration.

3. Positive Indicators:

• Improved Liquidity and Solvency: Net current assets increased from £3,029 at the end of 2022 to £11,119 in 2023, reflecting stronger short-term financial health.
• No Overdue Filings: Both accounts and confirmation statement filings are up to date, demonstrating good regulatory compliance.
• Stable Director Appointments: Both directors have been in place since incorporation, suggesting stable leadership.

4. Due Diligence Notes:

• Review detailed cash flow statements and profit & loss accounts (not provided here) to assess operational cash generation and profitability trends.
• Investigate the nature and terms of current liabilities to determine if any short-term obligations may pose liquidity risk.
• Assess the impact of the reduction in employee numbers on operational capacity and future growth prospects.
• Consider governance structure and potential risks arising from the dominant control by a single shareholder-director.