Company Number: 13197074

Analysis Date: 2025-07-19 12:56 UTC

1. Credit Opinion: DECLINE

LCC Floating Homes Limited presents significant credit risk based on the latest financial data. The company is deeply insolvent with net liabilities worsening from approximately -£163k in 2023 to -£193k in 2024. Current liabilities exceed current assets by over £193k, indicating acute liquidity stress and poor working capital management. The company relies entirely on director support to continue as a going concern, which may not be sustainable. Repeated large trade creditor balances (~£197k) signal payment delays or dependency on supplier credit, raising concerns over operational viability. Given these factors, the company does not demonstrate the capacity to service new or existing credit facilities reliably.

2. Financial Strength:

The balance sheet shows persistent negative shareholders’ funds, deteriorating from -£201k (2023) to -£231k (2024). The company holds minimal cash (£68) and debtor balances have declined substantially compared to the prior year (£9k vs £26k). Current liabilities ballooned to £202k, mainly trade creditors (£197k), far surpassing current assets (£9k). There are no fixed assets reported, suggesting limited collateral for secured lending. The equity deficit and net current liability position reflect a fragile financial structure vulnerable to shocks.

3. Cash Flow Assessment:

Cash at bank is critically low (£68), insufficient to meet immediate short-term liabilities. The working capital deficit of nearly £193k indicates ongoing liquidity strain. Debtors are minimal and have fallen markedly, which may reflect collection difficulties or reduced sales. The company employed only 1-2 people on average, suggesting low overheads but also limited operational scale. Overall, cash flow is inadequate to cover creditors, and no evidence of positive operating cash generation is apparent from the data.

4. Monitoring Points:

• Monitor quarterly cash flow statements to detect any improvement or further deterioration in liquidity.
• Watch trade creditor aging to assess supplier confidence and payment behaviour.
• Track debtor collections and turnover trends to gauge revenue stability.
• Review director support commitments and any changes in control or funding arrangements.
• Watch for overdue filings or any signs of insolvency proceedings, given the weak financial position.