LARNIE LIMITED

Executive Summary

LARNIE LIMITED presents a high credit risk profile due to persistent negative working capital, deteriorating shareholders’ funds, and minimal cash reserves. The company’s financial trajectory shows no signs of improvement, undermining its ability to service debt or support new credit facilities. Credit approval is not recommended without significant evidence of operational turnaround or capital injection.

LARNIE LIMITED - Analysis Report

Company Number: 13536770

Analysis Date: 2025-07-20 16:47 UTC

1. Credit Opinion: DECLINE LARNIE LIMITED exhibits a weak financial position characterized by consistent net current liabilities and negative shareholders’ funds over the last three years. The company’s ability to service any credit facility is highly questionable given its lack of positive working capital and minimal cash reserves (£100). The continuous and increasing shareholders’ deficit (from -£193 in 2023 to -£403 in 2024) indicates ongoing losses or capital erosion without recovery signs, raising significant credit risk. Without evidence of profitability or operational cash inflows, the company is unlikely to meet debt obligations reliably.

2. Financial Strength: The company’s balance sheet shows a persistent deficit in net current assets: -£304 in 2024 and -£93 in both 2022 and 2023. Total assets less current liabilities are negative (-£303 in 2024), and shareholders’ funds have deteriorated from a positive £100 at incorporation (2021) to a negative £403 by 2024. Fixed assets are negligible (£1 investment), and cash reserves remain minimal and stagnant at £100 over three years. This indicates weak capitalization and no asset base to cover liabilities or support borrowing.

3. Cash Flow Assessment: Cash on hand is extremely limited (£100), unchanged over multiple years, indicating minimal liquidity. Current liabilities have doubled from £193 in 2023 to £404 in 2024 with no corresponding increase in current assets. The negative net current assets position reflects an inability to cover short-term obligations from liquid resources. There is no indication of any trade creditors or payable aging, but the financials imply cash flow strain and insufficient working capital to sustain operations without external funding.

4. Monitoring Points:

• Track improvement or further deterioration in net current assets and shareholders’ funds.
• Monitor cash flow from operations and any changes in liquidity position.
• Review any forthcoming accounts or management commentary that might disclose plans for capital injection or operational turnaround.
• Observe director’s actions on financial restructuring or additional equity funding.
• Watch for any overdue filings or signs of financial distress such as late payments or creditor pressure.