Company Number: 14027655

Analysis Date: 2025-07-29 20:57 UTC

1. Risk Rating: LOW
   Lemon Ldn Limited demonstrates a solid net asset position relative to its size, with net assets consistently positive and no indication of overdue filings or compliance issues. The company maintains a positive working capital position and has no history of financial distress.

2. Key Concerns:

• Declining Current Assets: There is a notable decrease in current assets from £54,745 in 2024 to £12,180 in 2025, which may warrant investigation to understand the cause and sustainability of cash flows.
• Small Scale and Limited Financial Data: As a micro-entity with a single employee and minimal fixed assets, the company’s operational scale is very limited, potentially impacting resilience and growth prospects.
• Concentration of Control: The sole director and 100% shareholder being the same individual concentrates decision-making risk, which could affect governance robustness.

3. Positive Indicators:

• Strong Net Asset Position: Despite the drop in current assets, net assets remain positive at £10,420 for the latest year, indicating ongoing solvency.
• Up-to-Date Compliance: The company’s accounts and confirmation statement filings are current and not overdue, reflecting good regulatory compliance.
• Consistent Positive Working Capital: Net current assets remain comfortably positive (£10,283 in 2025), suggesting the company can meet short-term liabilities.

4. Due Diligence Notes:

• Clarify Reason for Asset Reduction: Examine the reasons behind the significant reduction in current assets and current liabilities between 2024 and 2025, including any non-recurring transactions or changes in working capital management.
• Review Cash Flow Trends: Obtain cash flow statements or management accounts, if available, to assess liquidity dynamics beyond balance sheet snapshots.
• Assess Governance Practices: Given the sole director/shareholder structure, review any related party transactions and internal controls to evaluate governance adequacy.