LEMOS ARCHITECTURE LIMITED

Executive Summary

Lemos Architecture Limited, a recently incorporated architectural services company, exhibits high financial risk due to negative net assets and limited liquidity. While statutory compliance and director support are positive signs, the company’s early-stage status and cash constraints present solvency and operational challenges. Close monitoring and further financial and operational due diligence are recommended to assess viability.

LEMOS ARCHITECTURE LIMITED - Analysis Report

Company Number: 14862453

Analysis Date: 2025-07-20 17:19 UTC

1. Risk Rating: HIGH
   Justification: The company shows significant net current liabilities (£2,700 negative working capital) and negative shareholders’ funds (£2,800) shortly after incorporation. Cash is minimal (£333), reflecting weak liquidity to meet short-term obligations.

2. Key Concerns:

• Liquidity Risk: Cash balance of only £333 against current liabilities of £3,033 indicates immediate cash flow constraints.
• Solvency Risk: Negative net assets and shareholders’ funds suggest that the company is technically insolvent on a balance sheet basis.
• Operational Stability: No employees reported and limited financial history due to recent incorporation; reliance appears to be on director funding (£2,373 owed to director), raising sustainability questions.

3. Positive Indicators:

• Compliance: All statutory filings (accounts and confirmation statements) are up to date with no overdue returns or accounts.
• Going Concern Statement: The director affirms going concern based on reviewed budgets and cash flow projections.
• Ownership and Control: Single shareholder/director with 75-100% control, simplifying decision-making and potentially enabling quick strategic actions.

4. Due Diligence Notes:

• Investigate the nature and terms of director loans and any other related party funding arrangements.
• Review detailed cash flow forecasts and budgets supporting the going concern assumption.
• Assess business plan viability and client pipeline to determine operational sustainability in the architectural services market.
• Confirm absence of contingent liabilities or off-balance sheet exposures not evident in the filings.
• Monitor future filings for improvement in financial position or signs of distress.