LEAN T LTD

Executive Summary

LEAN T LTD is financially stable with positive net assets and profitability, but the sharp decline in turnover signals challenges that need urgent attention. The company’s strong liquidity and compliance are positives, yet revitalizing sales and cautious growth investments are recommended to improve long-term financial health.

View Full Analysis Report →

Company Analysis

This analysis is opinion only and should not be interpreted as financial advice.

LEAN T LTD - Analysis Report

Company Number: 13528151

Analysis Date: 2025-07-20 18:38 UTC

Financial Health Assessment Report for LEAN T LTD


1. Financial Health Score: C

Explanation:
LEAN T LTD demonstrates a modest but stable financial position typical of a very small, early-stage micro-entity. The company shows positive net assets and profitability, but the sharp decline in turnover and relatively low profit margins suggest cautious optimism. The financial "vital signs" indicate some resilience, but also symptoms of limited scale and growth challenges.


2. Key Vital Signs

Metric 2024 Value (£) Interpretation
Turnover 8,420 Significant decline (74%) from £32,163 in 2023. Indicates business contraction or loss of clients.
Profit for Period 1,176 Positive but modest profit margin (~14%). Healthy but limited earnings relative to turnover.
Current Assets 2,091 Small but sufficient current assets to cover short-term obligations.
Current Liabilities 425 Low short-term debts. Good liquidity buffer.
Net Current Assets 1,666 Positive working capital indicates operational liquidity and ability to meet short-term debts.
Net Assets/Shareholders Funds 1,666 Small but positive equity base. Indicates company is solvent with net value.
Staff Costs 0 No employees reported; possibly contractor-based or owner-managed. Could limit growth capacity.

3. Diagnosis: What the Financial Data Reveals

  • Healthy Cash Flow Symptoms: The company carries positive net current assets and net assets, which are like a healthy pulse showing it can meet immediate liabilities without distress. This is a positive sign of financial stability at the micro-entity level.

  • Symptoms of Distress: The significant year-on-year turnover drop from £32,163 to £8,420 is a red flag—this sharp decline resembles a sudden loss of "vital signs" such as sales or client engagements. Although the company still reports a profit, it is much smaller, reflecting pressure on business operations or market conditions.

  • No Staff Recorded: The absence of staff costs suggests a very lean operation, likely owner-run. While this reduces overhead, it may also limit scalability and operational capacity.

  • No Fixed Assets: The lack of fixed assets means the company relies on intangible or service-based business models, common in IT consultancy, but also implies limited collateral for financing.

  • Positive Equity Growth: Net assets increased from £523 in 2023 to £1,666 in 2024, indicating retained earnings or capital injections, which can be seen as the body’s immune response strengthening the company’s financial health.

  • Compliance and Governance: Timely filing of accounts and confirmation statements without overdue penalties reflects good compliance and management discipline, akin to regular health check-ups being on schedule.


4. Recommendations: Steps to Improve Financial Wellness

  • Reinvigorate Sales Pipeline: The sharp decline in turnover is the most concerning symptom. Immediate focus should be on business development, marketing, and client retention to restore and grow revenue streams.

  • Cost Control and Efficiency: Maintain lean cost structure, but consider strategic investments (e.g., contractors, marketing) that could drive growth without jeopardizing cash flow.

  • Consider Diversifying Services: Expanding service offerings or entering complementary markets may help smooth income volatility and build resilience.

  • Build Cash Reserves: Continue to nurture positive net current assets to maintain liquidity "heartbeat," ensuring the company can weather short-term shocks.

  • Plan for Growth: If scaling is a goal, consider hiring or subcontracting to increase capacity, but balance this with cash flow realities.

  • Monitor Financial Metrics Regularly: Keep a close eye on monthly turnover, profit margins, and working capital as vital signs to catch early symptoms of distress.



More Company Information


Follow Company
  • Receive an alert email on changes to financial status
  • Early indications of liquidity problems
  • Warns when company reporting is overdue
  • Free service, no spam emails
  • Follow this company