LAPP LOGISTIC LTD

Executive Summary

LAPP LOGISTIC LTD is a micro-sized logistics company with modest net assets and improving short-term liquidity but a thin equity base and some long-term liabilities. While currently solvent and compliant with filings, the company’s financial position warrants conditional credit approval with close monitoring of cash flows and debt servicing capacity. The director’s full control and small scale present additional governance considerations for credit risk assessment.

LAPP LOGISTIC LTD - Analysis Report

Company Number: 13635637

Analysis Date: 2025-07-19 13:05 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   LAPP LOGISTIC LTD is an active micro private limited company operating in freight transport by road, with a single director holding full control. The company has shown some growth in current assets and net current assets in the latest financial year, but net assets have decreased significantly. The presence of a £10,000 creditor due after more than one year indicates some longer-term obligations. Given the small scale, limited financial history, and modest net assets, credit approval should be conditional on further monitoring of cash flow and debt servicing capability.

2. Financial Strength:
   The company’s balance sheet shows a net asset position of £2,653 as of 30 September 2024, down from £5,684 the previous year and significantly lower than £10,940 two years ago. Fixed assets are not separately stated in the latest year but were around £16,800 in 2023, suggesting some asset disposals or reclassification. Current assets have increased substantially to £13,287 from only £1 in the prior year, improving liquidity. However, there is a £10,000 creditor due beyond one year, which represents a material long-term liability relative to equity. Overall, the company remains solvent but with a thin equity base and fluctuating net assets.

3. Cash Flow Assessment:
   Current liabilities stand at £634, very low relative to current assets of £13,287, resulting in strong positive working capital of £12,653. This indicates short-term liquidity is adequate to cover immediate obligations. The company employs only one person, limiting payroll burden. However, the reduction in net assets and the presence of long-term creditors raise questions about longer-term cash flow sustainability. Without detailed P&L or cash flow statements, monitoring actual cash generation and debt repayments is advised before extending significant credit.

4. Monitoring Points:

• Track quarterly cash flow, especially ability to meet interest and principal repayments on longer-term liabilities.
• Monitor equity levels and net assets for further erosion or improvement.
• Watch for any changes in director or ownership structure that could impact governance or financial stewardship.
• Confirm timely filing of future accounts and confirmation statements to ensure regulatory compliance.
• Evaluate business growth and contract stability in freight transport sector, considering economic cycles.