Company Number: 13667993

Analysis Date: 2025-07-20 11:55 UTC

1. Credit Opinion: APPROVE
   L&A Delivery Ltd demonstrates a solid start-up phase with positive net assets and no current liabilities, indicating prudent financial management. The company operates in freight transport by road, a sector with steady demand. The director holds full control and appears actively involved. However, the company is very young (incorporated in late 2021) and small, which entails typical early-stage business risks. Approval is recommended with standard credit limits initially, monitoring for scaling and profitability.

2. Financial Strength:
   The company’s balance sheet shows net assets of £11,291 as of the last accounting date (31-10-2023), up from £5,160 in prior years, reflecting growth in current assets and retention of equity. There are no fixed assets recorded, which is typical for a micro entity likely leasing vehicles or equipment. Absence of liabilities indicates no debt burden, suggesting a clean financial position but also limited leverage. Shareholders’ funds equal net assets, confirming equity funding.

3. Cash Flow Assessment:
   Current assets of £11,290 with zero current liabilities yield a positive working capital position, implying the company can cover short-term obligations comfortably. The increase in current assets from £5,159 to £11,290 in one year evidences improved liquidity. Given the micro size and only one employee (the director), cash flow demands are likely modest. However, no detailed cash flow statement is available; ongoing monitoring recommended.

4. Monitoring Points:

• Track revenue growth and profitability as operations scale beyond start-up phase.
• Monitor any emerging liabilities or credit usage to assess debt servicing ability.
• Observe changes in asset base, especially if fixed assets or vehicle purchases increase capital requirements.
• Maintain vigilance on director’s management and control, given sole control by one individual.
• Review timely filing of accounts and confirmation statements to ensure compliance.