LEMARS LTD LTD

Executive Summary

LEMARS LTD LTD shows improving financial strength with increased net assets and positive working capital, supported by timely regulatory filings. However, the limited scale of operations and concentrated ownership warrant further investigation into the company’s profitability and operational sustainability before investment. Overall, current data suggests low solvency and liquidity risk but limited transparency due to micro-entity reporting.

LEMARS LTD LTD - Analysis Report

Company Number: 12734538

Analysis Date: 2025-07-29 12:09 UTC

1. Risk Rating: LOW
   LEMARS LTD LTD demonstrates a solid net asset position with increasing equity from £850 in 2023 to £12,903 in 2024, indicating improved financial strength. The company meets its short-term obligations with net current assets of £9,387 and has no overdue filings, reflecting sound compliance and liquidity.

2. Key Concerns:

• Limited financial disclosure due to micro-entity reporting limits detailed insight into profitability, cash flow, and debt structure.
• Very small scale operation with only one employee, which may limit operational resilience and scalability.
• Concentrated ownership and control (one individual owns 75-100% shares and voting rights), potentially increasing governance risks.

3. Positive Indicators:

• Strong growth in net assets and current assets in the latest financial year, showing positive capital injection or retained earnings.
• No overdue statutory filings indicating good regulatory compliance and management discipline.
• Stable directorship with no evidence of disqualifications or adverse regulatory issues.

4. Due Diligence Notes:

• Investigate the source of the significant increase in net assets between 2023 and 2024—whether from capital contributions, retained profits, or asset revaluation.
• Obtain more detailed financial information beyond micro-entity accounts to assess profitability, cash flow, and liabilities comprehensively.
• Review the company’s business model and contracts to evaluate operational sustainability given the very small workforce and narrow SIC classification.
• Confirm any related-party transactions or financial dependencies given the concentrated ownership and control.