Company Number: 13034879

Analysis Date: 2025-07-20 12:33 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Lance Harrison Limited is a small private limited company operating as a licensed carrier. The company shows positive net assets and working capital, indicating an ability to meet short-term obligations. However, a declining trend in net current assets and net assets over the last two years signals some financial weakening. The company’s cash position dropped from £23,276 in 2023 to £18,121 in 2024, and tangible fixed assets have also decreased. Though there are no overdue filings or legal concerns, the modest scale of operations with a single director and one employee suggests limited financial resilience. Approval is recommended with monitoring, contingent on maintaining or improving liquidity and profitability.

2. Financial Strength:

• Net Assets decreased from £19,045 in 2023 to £14,195 in 2024, indicating erosion of equity by approximately 25% in one year.
• Total assets less current liabilities declined by 31%, from £20,713 to £14,195.
• Tangible fixed assets reduced from £8,544 to £6,456, implying possible asset disposals or depreciation outpacing reinvestment.
• Share capital is nominal (£1.00), showing limited shareholder investment.
• Overall, the balance sheet is sound but weakening, with no long-term debt reported in 2024 (previously £1,668 finance lease liabilities fully repaid or removed).

3. Cash Flow Assessment:

• Cash on hand decreased from £23,276 to £18,121, reducing liquidity buffer.
• Current liabilities are modest at £10,382, comfortably covered by current assets and cash.
• Net current assets remain positive at £7,739, but down from £12,169 the prior year, indicating tighter working capital.
• The company appears able to meet short-term obligations but the declining liquidity trend warrants caution.

4. Monitoring Points:

• Track cash flow and working capital monthly to ensure liquidity does not deteriorate further.
• Monitor profitability and whether the company can reverse the fall in net assets.
• Review the impact of asset disposals or depreciation on operational capacity.
• Watch for any increase in liabilities or overdue filings that could signal financial stress.
• Assess any changes in management or operational scale given the single director and employee structure.