LAB INTERIORS LTD

Executive Summary

LAB INTERIORS LTD is a recently established private limited company operating in building finishing and cleaning services. While it maintains regulatory compliance and positive net assets, the slight working capital deficit and reliance on director loans present medium short-term liquidity and solvency risks. Further due diligence on cash flow generation and operational progress is recommended to confirm financial sustainability.

LAB INTERIORS LTD - Analysis Report

Company Number: 15267526

Analysis Date: 2025-07-29 15:07 UTC

1. Risk Rating: MEDIUM
   LAB INTERIORS LTD is a newly incorporated private limited company with less than one year of trading history. The financials show a slight net current liability position and reliance on director loans, which elevates short-term solvency and liquidity risks. However, no overdue filings or regulatory issues are evident at this early stage.

2. Key Concerns:

• Net Current Liability: Current liabilities (£62,755) exceed current assets (£61,739) by £1,016, indicating a working capital deficit which could pressure short-term liquidity.
• Director Loans: The company has £36,162 owed to directors, which while common in startups, represents a reliance on related-party financing that could impact financial stability if not replaced by external funding or operational cash flow.
• No Employees Yet: The company reported zero employees during the period, which may indicate that operations have not fully commenced or that the business model is not yet generating revenue, increasing operational risk.

3. Positive Indicators:

• Positive Net Assets: Despite a working capital deficit, the company reports positive net assets and shareholders’ funds (£5,384), indicating some equity buffer.
• No Filing or Compliance Issues: Accounts and confirmation statement filings are up to date, demonstrating good governance and regulatory compliance to date.
• Clear Control and Management: Single director and 75-100% shareholder Ata Frimpong provides clear decision-making authority and control, reducing governance complexity.

4. Due Diligence Notes:

• Cash Flow and Revenue Generation: Investigate current and projected cash flow sources, client contracts, and revenue pipeline to assess ability to cover liabilities and reduce reliance on director loans.
• Director Loan Terms: Clarify terms and repayment plans of director loans to understand any potential risks or liabilities to the company.
• Operational Plans: Review business plan and strategies for scaling operations, hiring staff, and achieving profitability given the zero employee count reported.
• Creditors Detail: Analyze trade creditors and accruals for payment terms and any potential disputes or overdue balances.
• Future Funding: Assess plans for external financing or capital injections to support growth and improve liquidity.