L R WELSH LIMITED

Executive Summary

L R WELSH LIMITED is a recently incorporated private company operating in real estate letting with current financials showing negative working capital and shareholders’ funds, indicating elevated solvency and liquidity risks. While compliance filings are up to date and directors assert going concern, the lack of profitability data and equity deficit warrant cautious scrutiny. Further financial and operational details are essential to fully evaluate the company’s sustainability and risk profile.

L R WELSH LIMITED - Analysis Report

Company Number: 15055336

Analysis Date: 2025-07-20 13:32 UTC

1. Risk Rating: HIGH
   Justification: The company shows net current liabilities of £1,817 with current liabilities exceeding current assets, indicating potential liquidity issues. Negative shareholders' funds reflect an equity deficit which raises solvency concerns. The company is newly incorporated (2023) with minimal financial history and no audit, limiting visibility on operational stability.

2. Key Concerns:

• Negative net current assets (£-1,817) suggest the company may struggle to meet short-term obligations.
• Shareholders' funds are negative (£-1,817), indicating the company’s liabilities exceed assets, risking solvency.
• Limited operational track record (incorporated August 2023) and absence of profit and loss accounts reduce ability to assess business sustainability and profitability.

3. Positive Indicators:

• Company status is active with no overdue filings, demonstrating compliance with Companies House requirements.
• Directors have certified going concern status in the accounts, implying management confidence in operational continuity.
• The company operates in real estate letting (SIC 68209), a sector which can generate stable rental income if managed prudently.

4. Due Diligence Notes:

• Obtain and review detailed profit and loss information and cash flow statements to assess operational performance and liquidity trends.
• Investigate the nature and timing of current liabilities, including trade creditors and tax obligations, to understand payment pressures.
• Examine directors' plans or financial arrangements addressing the negative equity and working capital shortfall.
• Confirm the absence of any director disqualifications or regulatory sanctions beyond the basic data provided.
• Assess the valuation and ownership status of underlying real estate assets for collateral or income generation potential.