Company Number: 13127002

Analysis Date: 2025-07-20 14:30 UTC

1. Credit Opinion: APPROVE
   L G CRANES LTD demonstrates positive financial trends with increasing net assets and shareholders' funds over the last three years. The company maintains a healthy net current asset position and has manageable liabilities, including a moderate level of bank loans. There are no overdue filings or indications of financial distress. The director has a stable background with no adverse records. Overall, the company shows capacity to meet its debt obligations and sustain operations.

2. Financial Strength:

• Net assets have grown from £20,946 in 2021 to £71,694 in 2025, indicating strong equity growth.
• Tangible fixed assets appear modest (£24,878) but appropriate for the business size (motor vehicle maintenance and repair).
• The company has started to carry longer-term bank loans (£16,254) but these remain well covered by equity and net assets.
• Provisions and deferred tax liabilities are recognized appropriately, reflecting sound accounting policy.
• Share capital is nominal (£10), typical for small companies.

3. Cash Flow Assessment:

• Cash balances have increased substantially to £47,572 in 2025 from £9,543 in 2023, improving liquidity.
• Debtors remain relatively stable around £100k, which suggests consistent sales but also a need for ongoing debtor management.
• Current liabilities have increased but remain comfortably covered by current assets, resulting in net current assets of £69,290.
• Working capital position is strong and improving, providing operational flexibility.
• The company has some bank overdraft usage (£4,150) but this is minimal relative to cash and assets.

4. Monitoring Points:

• Monitor debtor days and collection efficiency to ensure receivables do not increase disproportionately.
• Keep an eye on the bank loan repayment schedule, especially the longer-term loan, to assess refinancing or repayment risk.
• Watch any changes in provisions or liabilities that could affect net assets.
• Track turnover and profitability trends in future filings to confirm the positive trajectory.
• Ensure continued compliance with filing deadlines and absence of director conduct issues.