L & R LIMITLESS RENOVATIONS PARTNERS LTD

Executive Summary

L & R Limitless Renovations Partners Ltd is a newly incorporated micro-entity exhibiting significant financial distress with negative net assets and substantial working capital deficiency. While regulatory filings are current and directors have clear records, the company's solvency and liquidity position raise high risk concerns, necessitating detailed operational and financial due diligence before any investment consideration.

L & R LIMITLESS RENOVATIONS PARTNERS LTD - Analysis Report

Company Number: 14803338

Analysis Date: 2025-07-20 19:14 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency risk, with net current liabilities far exceeding current assets and negative net assets. The minimal share capital and lack of reported profits or cash reserves indicate financial distress and an inability to meet short-term obligations.

2. Key Concerns:

• Severe Negative Working Capital: Current liabilities (£110,909) vastly exceed current assets (£896), resulting in a net current asset deficit of approximately £110,000, signaling liquidity problems.
• Negative Net Assets and Shareholders’ Funds: Total net assets stand at -£27,874, indicating the company is insolvent on a balance sheet basis.
• Lack of Operational Data and Profitability Insight: The accounts are unaudited, prepared under micro-entity exemptions, and omit profit and loss information, limiting assessment of operational viability.

3. Positive Indicators:

• Timely Filing Compliance: The company is up to date with both accounts and confirmation statement filings, showing adherence to regulatory requirements.
• Experienced Control Persons: The directors and persons with significant control are identified and have no disclosed disqualifications or adverse records.
• Asset Base: Fixed assets of £88,900 may provide some collateral value for potential recovery or restructuring.

4. Due Diligence Notes:

• Investigate the nature and composition of the large current liabilities to understand if these are trade creditors, loans, or related party balances.
• Review cash flow forecasts or management accounts to assess immediate liquidity and funding sources.
• Clarify the reason for negative equity and whether there is a plan for capital injection or debt restructuring.
• Examine the absence of employees and operational data to determine if the company is trading or dormant in practice.
• Confirm the valuation and realizability of fixed assets under current market conditions.