L.C.P LEISURE GROUP LTD

Executive Summary

L.C.P LEISURE GROUP LTD is currently dormant with minimal financial activity, reflecting a nascent stage with no trading operations. The company’s financial health is fragile (Grade D), lacking operational cash flow or profits but remains compliant with statutory filings. To improve its financial wellness, it needs to activate trading, secure working capital, and implement robust financial planning aligned with its hospitality sector ambitions.

L.C.P LEISURE GROUP LTD - Analysis Report

Company Number: SC731851

Analysis Date: 2025-07-29 17:43 UTC

Financial Health Assessment for L.C.P LEISURE GROUP LTD

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1. Financial Health Score: Grade D

Explanation:
The company is currently dormant with minimal financial activity, reflected by a very low net asset base (£75) and negligible cash reserves (£75). The absence of operational financial metrics such as revenue, profit or working capital signals a lack of active business operations. While no distress is evident, the company’s financial vitality is insufficient to support ongoing business activities without additional capital or operational changes. Hence, the grade D reflects a fragile financial state typical of a newly incorporated dormant entity.

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2. Key Vital Signs

• Dormant Status: The company is classified as dormant, meaning it has not conducted significant financial transactions throughout the year. This is a critical indicator of inactivity.
• Cash Position: £75 cash at bank — an extremely low amount, indicating minimal liquidity.
• Net Assets / Shareholders Funds: £75 — equal to the nominal share capital, signifying no retained earnings or accumulated profits.
• No Reported Revenues or Expenses: Absence of profit and loss data implies no trading or operational financial activity.
• Company Age: Incorporated in May 2022, relatively new and yet to commence active trading.
• Directors & Control: Two directors with clear ownership and control; no signs of director misconduct or financial distress.
• Filing Compliance: Up to date with accounts and confirmation statements, showing good governance compliance.

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3. Diagnosis: What the Financial Data Reveals About Business Health

L.C.P LEISURE GROUP LTD currently exhibits the "symptom" of dormancy, akin to a patient in a resting phase without active metabolism. The financial "vital signs" reveal no operational activity, no revenue generation, and no expenses incurred. Its net assets reflect only the nominal capital invested at incorporation, with no growth or retained earnings.

This dormant status means the company is in a state of financial hibernation, neither generating cash flow nor incurring liabilities. While not exhibiting signs of distress such as losses or debts, the company is financially inert, awaiting activation or infusion of operational resources.

If the intention is to start trading in the hotels and accommodation sector (SIC: 55100), the current financial state indicates that significant capital investment and operational planning are needed to achieve a "healthy cash flow" and positive financial performance.

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4. Recommendations: Specific Actions to Improve Financial Wellness

• Activate Trading Operations: To transition from dormancy, begin actual trading activities aligned with the hotels and accommodation sector. This will generate revenue and operational cash flow.
• Raise Working Capital: Secure additional funding or capital injection to support initial operating expenses—staff, premises, marketing.
• Prepare Financial Projections: Develop detailed budgets and cash flow forecasts to plan for sustainable growth and monitor liquidity needs.
• Establish Financial Controls: Implement accounting systems to track revenues and expenses accurately once trading starts.
• Monitor Compliance: Continue timely filing of accounts and confirmation statements to maintain good corporate governance.
• Engage Advisory Support: Consider consulting with financial and business advisors to strategize market entry, pricing, and operational efficiency.
• Review Business Model: Assess market demand and competitive positioning in the hospitality sector to ensure viability.

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