LANGUAGE INTERPRETERS LTD

Executive Summary

Language Interpreters Ltd presents a low financial risk profile based on recent balance sheet improvements and compliance with filing obligations. While the company is small and operationally limited, its liquidity position and equity growth support short-term solvency. Further financial detail review is advised to fully confirm operational sustainability and cash flow adequacy.

LANGUAGE INTERPRETERS LTD - Analysis Report

Company Number: 12667551

Analysis Date: 2025-07-20 14:59 UTC

1. Risk Rating: LOW
   The company demonstrates positive net current assets, steady growth in shareholders’ funds over recent years, and timely filing of statutory accounts and confirmation statements. These factors suggest a low risk of insolvency or immediate liquidity issues.

2. Key Concerns:

• Small scale operation with only one employee on average, which may limit operational capacity and business continuity risk.
• Minimal share capital (£1.00) indicates limited equity buffer, though this is typical for micro-entities.
• Lack of detailed profit and loss data or cash flow statements restricts deeper assessment of operational profitability and cash generation.

3. Positive Indicators:

• Strong improvement in net current assets from negative £1,056 in 2021 to positive £37,635 in 2024, indicating better short-term liquidity management.
• Shareholders’ funds have increased substantially from £144 in 2020 to £38,817 in 2024, reflecting retained earnings or capital injections.
• Consistent and timely compliance with filing requirements, with no overdue accounts or confirmation statements.
• Active website presence with multiple contact points and social media, supporting business legitimacy and customer engagement.
• Director has been in position since incorporation with no reported disqualifications or regulatory issues.

4. Due Diligence Notes:

• Review detailed profit and loss accounts and cash flow statements (if available) to assess operational profitability trends and sustainability.
• Confirm the nature and quality of current assets (e.g., cash vs. receivables) to validate liquidity strength.
• Investigate client base diversity and contract stability given the company’s micro size and reliance on a single employee.
• Assess director’s background for any informal concerns despite no official disqualifications.
• Verify any contingent liabilities or off-balance-sheet obligations not captured in the micro-entity accounts.