LA PROJECT INSIGHTS LTD

Executive Summary

LA Project Insights Ltd demonstrates moderate solvency with positive net assets but faces liquidity challenges from negative working capital. The company maintains good statutory compliance and shows some financial improvement, though limited disclosures and single-person operation warrant caution. Further investigation into cash flow management and operational sustainability is recommended to fully assess risk.

LA PROJECT INSIGHTS LTD - Analysis Report

Company Number: 13270056

Analysis Date: 2025-07-29 20:51 UTC

1. Risk Rating: MEDIUM
   The company shows modest net assets with a negative net current asset position, indicating potential liquidity constraints. However, it remains solvent on a total assets less current liabilities basis and has filed all statutory returns on time without audit requirements, reflecting basic compliance.

2. Key Concerns:

• Negative net working capital: Current liabilities (£30,306) exceed current assets (£26,861) by £3,445 as of March 2024, which may impair short-term liquidity and ability to meet immediate obligations.
• Reliance on a single director and employee: The company operates with one person, which could pose operational risks and continuity challenges.
• Lack of audit and limited disclosures: As a small company exemption filer, absence of audited financials and limited profit & loss information restricts comprehensive assessment of profitability and cash flow stability.

3. Positive Indicators:

• Timely compliance: Accounts and confirmation statements are filed on time, suggesting good governance on statutory requirements.
• Improvement in net assets: Shareholders’ funds increased from £7,573 in 2023 to £11,561 in 2024, indicating some accumulation of retained earnings or capital injection.
• Presence of goodwill asset: £12,000 of intangible assets (goodwill) reflects some value in acquired business or IP, which may provide strategic advantage.

4. Due Diligence Notes:

• Verify cash flow and working capital cycles, particularly how the company manages to meet current liabilities given persistent negative net current assets.
• Investigate income streams, profitability, and future contracts to assess sustainability since profit and loss data are not publicly filed.
• Confirm the accuracy and recoverability of debtors (£16,140) and the nature of creditors, including taxation and social security liabilities which are significant.
• Understand the nature and amortisation of goodwill to evaluate potential impairment risks.
• Assess director’s plans for growth, staffing, and risk mitigation given single-person dependence.