LANTERN BUILDING CONSULTANCY LIMITED

Executive Summary

Lantern Building Consultancy Limited shows a strengthening financial position with improved equity and working capital, accompanied by timely statutory compliance and business growth signals. The limited disclosure typical of micro-entities and concentration of control warrant cautious monitoring, but no immediate solvency or liquidity red flags are evident. Further examination of cash flows and operational contracts is recommended to confirm sustainability.

LANTERN BUILDING CONSULTANCY LIMITED - Analysis Report

Company Number: 13658273

Analysis Date: 2025-07-20 19:13 UTC

1. Risk Rating: LOW to MEDIUM
   Lantern Building Consultancy Limited demonstrates improving financial position with positive net assets and net current assets as of the latest accounts. The company is current with filings and operational since 2021. However, limited financial detail due to micro-entity status and a relatively short trading history introduce some uncertainty typical of early-stage SMEs.

2. Key Concerns:

• Limited Financial Disclosure: As a micro-entity, it files abbreviated accounts with no profit and loss details, restricting insight into profitability and cash flow trends.
• Current Liabilities Close to Current Assets: While net current assets improved to £7,862 in 2024, the current liabilities remain significant (£94,033), suggesting working capital management should be monitored.
• Concentration of Control: Two individuals each control 25-50% of shares and voting rights, which may present governance risks if interests diverge.

3. Positive Indicators:

• Improved Financial Position: Shareholders’ funds grew substantially from £397 in 2023 to £34,566 in 2024, indicating capital injection or retained profits and a stronger balance sheet.
• No Overdue Filings: The company is compliant with Companies House filing deadlines for accounts and confirmation statements, showing good governance practices.
• Growing Workforce: Employees increased from 1 to 4 in the latest year, suggesting expansion and operational scaling.

4. Due Diligence Notes:

• Review underlying cash flow statements or management accounts (if available) to assess liquidity beyond the balance sheet snapshot.
• Investigate the nature and timing of current liabilities to ensure they are not indicative of payment delays or supplier pressures.
• Assess the commercial contracts and client base stability to gauge operational sustainability in the professional consultancy sector.
• Confirm any related party transactions or financial support from directors/shareholders given their significant control.
• Verify absence of any director disqualifications or adverse conduct records for current directors.