LAWTUMN LEGAL LTD

Executive Summary

Lawtumn Legal Ltd is a newly established small legal services company with limited financial history and a weak balance sheet characterized by a working capital deficit and modest equity. The company’s liquidity is constrained by short-term liabilities exceeding cash reserves and finance lease obligations. Credit approval is cautiously recommended for low-value facilities with close monitoring of cash flow and operational performance.

LAWTUMN LEGAL LTD - Analysis Report

Company Number: 14459387

Analysis Date: 2025-07-29 12:42 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Lawtumn Legal Ltd is a recently incorporated private limited company with just over one year of trading history. While the company is active and filings are up to date, its financial position shows limited net assets (£2,050) and a working capital deficit (-£6,979), indicating short-term liquidity pressure. The presence of significant finance lease obligations (£22,458) adds to fixed financial commitments. The single director and 100% owner, Ms Charlotte Coonick, appears to maintain control and oversight, but the company’s small scale and early stage mean credit exposure should be limited and carefully monitored. Approval can be considered for small credit facilities with strict covenants and regular financial reviews.

2. Financial Strength:
   The company’s balance sheet shows fixed tangible assets of £31,487 primarily in motor vehicles and fixtures, partially offset by depreciation. Current assets are low at £18,424, all held in cash, but current liabilities exceed current assets by £6,979, reflecting a working capital deficit. Additionally, finance lease liabilities of £22,458 represent medium to long-term debt secured against assets. Net assets stand at a modest £2,050, indicating a very thin equity buffer. Overall, the financial strength is weak with limited reserves, suggesting vulnerability to unforeseen expenses or downturns.

3. Cash Flow Assessment:
   Cash of £18,424 is the main current asset, but current liabilities of £25,403 demonstrate immediate obligations that exceed liquid resources. This implies potential cash flow pressure in meeting short-term payables. The company’s reliance on finance leases increases fixed outflows, and given the working capital deficit, liquidity management will be critical. There is no detailed profit and loss information, but the absence of retained earnings or reserves beyond £1,950 indicates limited internal cash generation. The company should maintain stringent cash controls and consider short-term financing to support operations.

4. Monitoring Points:

• Working capital position and ability to meet short-term liabilities without delay
• Timely servicing of finance lease obligations and any other debt commitments
• Turnover and profitability trends in future filings to assess operational viability
• Director’s ability to inject additional capital or secure third-party funding if needed
• Compliance with all filing deadlines and regulatory requirements to avoid penalties
• Any changes in ownership or directorship which may affect management stability