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.