LAZAK LIMITED

Executive Summary

LAZAK LIMITED is a very small, recently incorporated private company operating in residential care and related support services. It demonstrates regulatory compliance and modest profitability but remains financially fragile due to limited turnover, small net assets, and concentrated control. Prospective investors should conduct further due diligence on cash flow, liabilities, and operational sustainability before committing capital.

LAZAK LIMITED - Analysis Report

Company Number: SC723192

Analysis Date: 2025-07-29 20:09 UTC

1. Risk Rating: MEDIUM
   The company is very young (incorporated in 2022) and classified as a micro entity with limited turnover and net assets. While it shows a small profit for the latest period, the scale of operations and financial base remain modest, which inherently carries moderate risk from an investor perspective.

2. Key Concerns:

• Low Turnover and Profitability: The turnover of £34,805 and net profit of £638 for the latest financial year indicate a very small revenue base and thin profitability, which may limit operational resilience.
• Modest Net Asset Base and Leverage: Net assets stand at £2,120 with some current liabilities (£5,061) and longer-term creditors (£1,133), suggesting limited equity cushioning and moderate leverage for a micro entity.
• Single Employee and Concentrated Control: The company operates with only one employee and has two individuals controlling 25-50% each, which may pose operational and governance risks due to concentration of decision-making and limited management depth.

3. Positive Indicators:

• Compliance and Timely Filings: Accounts and confirmation statements are filed on time with no overdue filings, demonstrating regulatory compliance and good governance practices.
• Increasing Net Assets: Net assets have increased from £500 in prior years to £2,120, reflecting some capital growth and retained earnings despite the small scale.
• Profitability Achieved: The company reported a modest profit for the year ended February 2024, indicating initial operational viability in its sector.

4. Due Diligence Notes:

• Review detailed cash flow statements and working capital management to assess short-term liquidity beyond the snapshot balance sheet.
• Investigate the nature and terms of current and long-term liabilities to understand repayment obligations and potential refinancing risk.
• Assess the sustainability of revenue streams and client concentration, especially given the business engages in residential care activities and supporting services, which may be sensitive to regulatory and market changes.
• Evaluate the experience and backgrounds of key directors and the operational capacity given the minimal staffing.
• Confirm no outstanding legal or regulatory issues given the company’s sector and young age.