LCS PROJECT SOLUTIONS LTD

Executive Summary

LCS Project Solutions Ltd is a recently incorporated private limited management consultancy with positive net current assets and stable equity, indicating basic solvency and regulatory compliance. However, substantial tax and VAT liabilities and limited operating history present moderate risk factors requiring further scrutiny of liquidity and operational sustainability. Overall, the company appears financially stable but early-stage with typical small business risks.

LCS PROJECT SOLUTIONS LTD - Analysis Report

Company Number: 14527954

Analysis Date: 2025-07-29 20:52 UTC

1. Risk Rating: MEDIUM
   LCS Project Solutions Ltd shows a positive net current asset position and maintains shareholders' funds above £20k, indicating basic solvency. However, the company is newly incorporated (December 2022) with limited financial history and modest asset base, typical for a small management consultancy. The concentration of current liabilities related to tax and VAT obligations warrants attention.

2. Key Concerns:

• Tax and VAT Creditors: At £27,013 for tax and £12,757 for VAT (31 March 2025), these liabilities form a significant portion of current liabilities (£42,053), potentially impacting liquidity if not managed carefully.
• Limited Operating History: Incorporated in late 2022, with financial data only covering about 1.25 years, there is limited evidence of operational stability or profitability trends.
• Directors’ Current Account Fluctuation: A sharp reduction from £10,211 owed to directors in 2023 to £894 in 2025 suggests changes in financing arrangements that should be reviewed for sustainability or potential cash flow pressure.

3. Positive Indicators:

• Positive Net Current Assets: The company maintains a positive working capital (£13,359 in 2025), indicating current assets comfortably exceed current liabilities.
• Stable Shareholders’ Funds: Equity increased from £19,123 in 2023 to £20,821 in 2025, suggesting retained earnings or capital injections.
• No Filing Overdues: Accounts and confirmation statements are filed on time, indicating regulatory compliance and good governance.
• Active Website and Contact Details: Presence of an active website with contact information supports operational legitimacy.

4. Due Diligence Notes:

• Verify the nature of the significant tax and VAT liabilities and confirm payment plans or settlements to assess liquidity risk.
• Review management accounts or cash flow forecasts to assess operational sustainability beyond the limited historical data.
• Investigate the directors’ current account transactions to understand cash injections or withdrawals and their impact on cash flow.
• Confirm client base, contracts, and revenue stability given the consultancy nature of the business.
• Assess any related party transactions given directors’ significant control and equity stakes.