LAI BEAUTIFUL LTD

Executive Summary

LAI BEAUTIFUL LTD is a newly established small retail company with a modest but positive net asset position and adequate short-term liquidity. Given its limited operating history, credit approval is recommended on a conditional basis with close monitoring of financial performance and cash flow. The company currently demonstrates sufficient capacity to meet immediate obligations but requires ongoing oversight as it develops.

LAI BEAUTIFUL LTD - Analysis Report

Company Number: 14937716

Analysis Date: 2025-07-20 11:14 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   LAI BEAUTIFUL LTD is a newly incorporated private limited company (established June 2023) operating in the retail sector specializing in furniture and lighting. The company has filed its first set of accounts for the period ending June 2024 showing a modest but positive net asset position. However, due to the company’s infancy and limited financial history, credit approval should be conditional on continuous monitoring of trading performance and cash flow stability. The absence of loans or significant liabilities is positive, but the small scale and limited operational history pose some risk.

2. Financial Strength:
   The balance sheet as of 30 June 2024 shows current assets of £8,116, including £6,166 in cash, against current liabilities of £5,269. This results in net current assets (working capital) of £2,847 and net assets of the same figure, which is also the shareholders’ funds. The company has no fixed assets and no reported long-term liabilities. The capital structure is minimal with a called-up share capital of £1, and the retained profit reserve accounts for almost all equity. The financial position is sound but very modest in scale, reflecting a small startup phase.

3. Cash Flow Assessment:
   Cash holdings at £6,166 provide a reasonable liquidity buffer relative to £5,269 of current liabilities, indicating the company can meet short-term obligations at present. The positive working capital and cash balance reduce immediate liquidity risk. However, no information is available on operating cash flow or profitability trends beyond the initial period, so continued cash flow monitoring is essential to confirm ongoing debt servicing ability.

4. Monitoring Points:

• Business growth trajectory: Track turnover and profitability development in subsequent accounts.
• Working capital fluctuations: Monitor changes in current assets and liabilities for liquidity pressures.
• Cash flow generation: Confirm positive operating cash flow and ability to cover liabilities and potential credit facilities.
• Director’s management: Observe if the sole director maintains compliance and prudent financial management.
• Filing timeliness: Ensure future accounts and confirmation statements are filed on time to avoid regulatory risk.