Company Number: 12997211

Analysis Date: 2025-07-20 14:40 UTC

1. Risk Rating: LOW
   LEMEN LIMITED demonstrates a solid net asset position with positive working capital and no overdue filings. The micro-entity status limits disclosure but available data indicates operational and financial stability.

2. Key Concerns:

• Declining net assets from £110k in 2020 to £83k in 2023 warrants monitoring for underlying causes.
• Limited share capital (£1) could imply minimal equity buffer against liabilities or adverse events.
• Directors both owning 25-50% shareholdings and related occupations (one chiropractor, one director) may indicate a closely held company with potential governance concentration risk.

3. Positive Indicators:

• Positive net current assets (~£65k) show good short-term liquidity, suggesting ability to meet near-term obligations.
• No overdue accounts or confirmation statements, indicating compliance with filing and governance requirements.
• Stable employee count (2) over multiple years implies operational continuity.

4. Due Diligence Notes:

• Investigate reason for net asset decline over recent years to assess sustainability of profitability or asset management.
• Review cash flow statements (if available) to confirm liquidity beyond balance sheet snapshots.
• Understand business model and revenue sources under SIC codes 74909 and 55209 to assess market risk and operational stability.
• Verify whether related party transactions or director loans exist given closely held ownership.
• Confirm absence of director disqualifications or other governance red flags.