LEGASI LTD

Executive Summary

LEGASI LTD currently exhibits a high risk profile primarily due to its negative working capital position and minimal operational scale. Although compliant with filing requirements and showing a slight improvement in net assets, the company’s liquidity and solvency concerns present significant challenges. Further due diligence is required to understand its cash flow dynamics and short-term obligations.

LEGASI LTD - Analysis Report

Company Number: 14155771

Analysis Date: 2025-07-29 21:15 UTC

1. Risk Rating: HIGH

Justification: LEGASI LTD shows significant liquidity concerns with severely negative net current assets in both reported years. While net assets have marginally improved, the company remains highly leveraged on short-term liabilities relative to its current assets. The lack of employees and small asset base also raise questions about operational stability.

2. Key Concerns:

• Liquidity risk: Net current assets were negative by £90,335 at 30 June 2024, indicating potential difficulties in meeting short-term obligations.
• Operational sustainability: The company has no employees and minimal current assets (£1,627) relative to current liabilities (£91,962), which suggests limited operational activity or cash flow generation.
• Financial leverage and solvency: Reliance on creditors to fund assets with very low equity (£2,845) may indicate vulnerability to creditor actions or challenges in obtaining external finance.

3. Positive Indicators:

• Timely filing: The company is up to date with its accounts and confirmation statement filings, indicating compliance with regulatory requirements.
• Improvement in net assets: The company moved from net liabilities of £95 in 2022 to net assets of £2,845 in 2024, showing some positive movement in its balance sheet.
• Micro-entity status: The company benefits from simplified reporting requirements, which may reduce administrative burden.

4. Due Diligence Notes:

• Investigate the nature and terms of current liabilities to assess repayment schedules and creditor relationships.
• Clarify the source of funds and business model given the absence of employees and minimal current assets.
• Review cash flow statements or bank records (if available) to better understand liquidity position and operational cash generation.
• Confirm no off-balance sheet liabilities or contingent risks exist beyond what is disclosed.
• Assess the director’s plans or strategies to improve working capital and financial stability.