Company Number: 12734383

Analysis Date: 2025-07-29 19:37 UTC

1. Risk Rating: LOW
   LCIT LIMITED demonstrates a stable financial position with positive net current assets and net assets increasing steadily over the past five years. The company is current with all statutory filings and shows no indicators of financial distress or governance issues.

2. Key Concerns:

• Limited Share Capital: The nominal share capital is only £1.00, which is minimal and may not provide substantial buffer for operational or financial shocks.
• Small Scale and Micro Entity Status: As a micro-entity with only two employees, the company may have limited operational scale and diversification, which could affect resilience to market or client fluctuations.
• Related Party Control Concentration: Significant control is concentrated between two directors who also hold 50-75% voting rights each, which could pose governance risks if interests diverge.

3. Positive Indicators:

• Consistent Growth in Net Assets: Net assets have grown from £16,171 in 2020 to £46,350 in 2024, indicating retained profitability or capital injections.
• Strong Liquidity Position: Net current assets are positive and improving, with current assets significantly exceeding current liabilities, suggesting ability to meet short-term obligations.
• Compliance and Governance: All accounts and confirmation statements are up to date with no overdue filings. The company is not in liquidation or administration, and there are no director disqualifications reported.

4. Due Diligence Notes:

• Review the detailed profit and loss accounts (not provided) to confirm revenue streams, profitability, and cash flow sufficiency, given that only balance sheet data is available here.
• Investigate the nature of related party transactions or inter-company dealings, if any, given the ownership and control structure.
• Assess the business model and client concentration given the company's small size to understand operational sustainability and growth prospects.
• Confirm if the company holds any contingent liabilities or off-balance sheet exposures not reflected in the micro-entity accounts.