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.