Company Number: SC678142

Analysis Date: 2025-07-29 13:42 UTC

1. Risk Rating: HIGH
   The company shows negative net assets as of the latest financial year, indicating insolvency on a balance sheet basis. There are no current assets to cover current liabilities, and shareholders’ funds are negative. This raises significant solvency and liquidity concerns.

2. Key Concerns:

• Negative net assets of £224 as at 31 October 2024, deteriorating from positive net assets in prior years.
• Current liabilities exceeding current assets (liabilities of £224 vs zero current assets), implying immediate liquidity constraints.
• Recent changes in directorship and significant control structure may indicate underlying operational or governance shifts needing scrutiny.

3. Positive Indicators:

• The company remains active with timely filings of accounts and confirmation statements, indicating compliance with statutory obligations.
• Small size (micro-entity) limits complexity and potentially reduces overhead costs.
• The company has maintained a stable average employee number of 2, suggesting operational continuity.

4. Due Diligence Notes:

• Investigate the cause of the sudden deterioration from positive net assets in 2023 to negative in 2024, including review of income, expenses, and any one-off charges.
• Clarify the nature of current liabilities (£224) and expected timing of settlements to assess cash flow risk.
• Review management’s plans to restore solvency and liquidity, including capital injections or operational restructuring.
• Assess the impact of director changes in 2023 and 2024 on governance and strategic direction.
• Confirm absence of any contingent liabilities or pending legal actions not disclosed in accounts.