Company Number: SC719377

Analysis Date: 2025-07-29 18:59 UTC

1. Risk Rating: MEDIUM
   The company is a micro-entity with modest net assets and limited disclosed financial detail. While it is current with its filings and has positive net assets, the presence of long-term liabilities exceeding current assets signals potential solvency concerns.

2. Key Concerns:

• Long-term Creditors Exceed Current Assets: The balance sheet shows significant creditors falling due after more than one year (£34,714), which is greater than current assets (£22,110), indicating possible reliance on external financing or deferred obligations that may strain cash flows.
• Limited Financial Transparency: As a micro-entity, the company files abbreviated accounts without profit and loss details, limiting insight into operational profitability and cash flow generation.
• Single Director and Owner Concentration: The entire shareholding and control is held by one individual, which may raise governance and continuity risks.

3. Positive Indicators:

• Timely Filing Compliance: The company is up to date with accounts and confirmation statement filings, indicating sound compliance and administrative discipline.
• Positive Net Assets and Shareholders’ Funds: Net assets increased from £7,884 (2023) to £9,190 (2024), suggesting modest growth in equity.
• Stable Employee Base: The company maintains a small but consistent workforce (2 employees), suitable for a micro-entity, indicating operational continuity.

4. Due Diligence Notes:

• Review of Long-term Liabilities: Investigate the nature and terms of the creditors due after more than one year to assess repayment risk and impact on liquidity.
• Request Full Profit & Loss Data: Obtain detailed financial statements or management accounts to evaluate profitability trends and cash flow adequacy.
• Assess Director and Shareholder Background: Conduct background checks on the sole director/owner for experience, reputation, and any regulatory issues.
• Confirm Operational Model and Revenue Streams: Given the SIC code (agents involved in the sale of furniture and related goods), verify the business model, client base, and market position to assess sustainability.