Company Number: SC722887

Analysis Date: 2025-07-20 13:49 UTC

1. Risk Rating: HIGH
   The company shows negative net current assets and net liabilities in the latest financial year, indicating an inability to cover short-term obligations. The very low asset base and minimal cash position further exacerbate solvency concerns.

2. Key Concerns:

• Negative net current assets of £223 as of 28 Feb 2024, down from positive net assets previously, implying liquidity pressure.
• Minimal working capital and cash resources (£2,399 current assets, but £2,622 current liabilities), signaling potential cash flow difficulties.
• No employees reported, suggesting limited operational scale or early-stage status which may impact stability and growth potential.

3. Positive Indicators:

• The company is currently active with no overdue filings, indicating compliance with statutory requirements.
• Directors appear stable with no reported disqualifications or governance issues.
• Clear ownership structure with two significant controllers, potentially enabling decisive management.

4. Due Diligence Notes:

• Investigate the nature of current liabilities and whether these are short-term trade payables or related party loans.
• Assess the company’s business model, revenue streams, and plans to improve liquidity and operational scale.
• Confirm if there are any contingent liabilities or off-balance-sheet risks not reflected in the micro-entity accounts.
• Review cash flow projections and any recent transactions post-year-end that may affect solvency.
• Understand why the company has no employees and whether it relies on subcontractors or related parties.