LCH DEE VIEW LIMITED

Executive Summary

LCH DEE VIEW LIMITED is a newly formed construction company showing fragile financial health characterized by minimal liquidity and equity buffers. While currently solvent, the company operates with a very tight working capital margin and very low cash reserves, indicating a delicate financial position. Strategic focus on cash flow improvement and capital strengthening is essential to build resilience and support future growth.

LCH DEE VIEW LIMITED - Analysis Report

Company Number: 14525431

Analysis Date: 2025-07-20 14:08 UTC

Financial Health Assessment Report for LCH DEE VIEW LIMITED

---

1. Financial Health Score: D

Explanation:
The company shows signs of financial vulnerability with extremely thin net current assets and minimal equity. While it is not yet in distress, the balance sheet "vital signs" suggest potential liquidity challenges and limited buffer to absorb shocks. The D grade reflects that the company is operational but financially fragile.

---

2. Key Vital Signs

Metric	Value	Interpretation
Current Assets	£450,100	Primarily stocks (£450,000) with nominal cash (£100). A high level of stock ties up liquidity.
Cash on Hand	£100	Critically low cash, indicating limited immediate liquidity to cover short-term obligations.
Current Liabilities	£450,000	Very high, almost equal to current assets, indicating tight working capital.
Net Current Assets (Working Capital)	£100	Minimal positive working capital, signaling very thin liquidity margin.
Net Assets (Equity)	£100	Extremely low equity base, signaling minimal financial cushion against liabilities.
Shareholder’s Funds	£100	Matches net assets, confirming almost no retained earnings or reserves.
Employees	0	No employees; may imply reliance on contractors or minimal operations currently.
Company Age	~1 year	Very young company, still in startup phase with limited financial history.

---

3. Diagnosis: Financial Health Analysis

• Liquidity "Pulse": The company’s liquidity is weak. With only £100 cash available but £450,000 in stocks and equal current liabilities, the business is at risk of cash flow strain. Stocks are not immediately convertible to cash and may require time or discounts to liquidate. This is a symptom of a business in its early stages or one that is overstocked relative to current liabilities.

• Solvency "Heartbeat": Net assets and shareholder funds of only £100 indicate the company has just enough equity to cover minimal liabilities. This suggests the business has not yet built up retained profits or injected significant capital beyond initial share capital. The company’s solvency is fragile and dependent on improving operational results or capital injections.

• Operational "Vital Signs": The absence of employees and the fact that turnover and profit/loss details are not disclosed in the abbreviated accounts suggest early-stage operations or limited trading activity. The company may be in the setup or investment phase, building stock in preparation for future sales.

• Risk of Financial "Distress": The tight working capital and minimal equity create symptoms of financial stress. The company currently survives on a delicate balance of assets and liabilities, with little room for unexpected expenses or downturns. Without improved cash flow, there is a risk that overdue payments or inability to fund operations could arise.

---

4. Recommendations: Steps to Improve Financial Wellness

1. Enhance Cash Flow Management:

   • Prioritize converting stock into cash by accelerating sales or negotiating better payment terms with customers.
   • Monitor cash closely to avoid liquidity crunches; consider short-term financing if necessary.

2. Strengthen Capital Base:

   • Consider additional equity investment from the parent company (Lister Carter Homes Limited) or other investors to build a stronger financial cushion.
   • Retain earnings when possible rather than distributing profits early on.

3. Optimize Inventory Levels:

   • Review stock levels to ensure they align with demand forecasts and avoid overstocking.
   • Implement inventory management controls to reduce holding costs and free up working capital.

4. Develop Operational Capacity:

   • Plan for hiring or subcontracting to support growth once sales volume increases.
   • Document and forecast cash flow and profitability to guide management decisions.

5. Regular Financial Monitoring:

   • Establish monthly financial reviews focusing on liquidity ratios and working capital.
   • Use simple metrics like current ratio (current assets/current liabilities) and quick ratio to track improvements.

---

Medical Analogy Summary:

LCH DEE VIEW LIMITED is like a young patient with a very low blood pressure of liquidity and a fragile immune system of equity. The company shows symptoms of strain with barely enough "blood" (cash) to keep operations flowing and a skeletal "body" (equity) that offers little protection. Without timely interventions—improving cash flow and strengthening capital—the risk of a financial "collapse" could increase.

---