Company Number: SC729751

Analysis Date: 2025-07-20 18:58 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns, with persistent negative net assets and net liabilities worsening from -£733 in 2023 to -£5,488 in 2024 despite increased current assets. The large accruals and deferred income reported in 2024 (£11,450) add uncertainty to liquidity. The company is very young (incorporated 2022) and operates at a micro scale with minimal share capital (£176.39), increasing operational risk.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The company’s equity position remains negative and has deteriorated, indicating ongoing losses or accumulated deficits, raising solvency risk.
• High Accruals and Deferred Income: The £11,450 of accruals/deferred income in 2024 is substantial relative to total assets and liabilities, potentially impacting cash flow and earnings recognition.
• Limited Financial History & Scale: As a micro-entity incorporated only in 2022, limited operational track record and minimal capitalization limit confidence in sustainability and operational stability.

3. Positive Indicators:

• Improved Working Capital Position: Net current assets improved to £5,443 in 2024 from a negative position the prior year, suggesting better short-term liquidity management.
• Compliance with Filing Requirements: Accounts and confirmation statements are filed on time, indicating good regulatory compliance to date.
• Clear Control Structure: The majority shareholder and director (Xxxxxx Xxxxxxxxname shown to subscribers) holds controlling interest and management role, which may facilitate focused decision-making.

4. Due Diligence Notes:

• Examine the nature and terms of the accruals and deferred income to assess impact on cash flow and future earnings.
• Review the company’s business model, revenue streams, and plans for addressing negative equity and achieving profitability.
• Confirm any related party transactions or director loans affecting financial position.
• Assess the director’s background and experience given the company’s early stage and sector (engineering consulting).
• Monitor future filings for trends in financial performance and solvency.