LENAR LIMITED

Executive Summary

Lenar Limited is a micro-entity with a negative net asset position and no current assets, indicating a weak financial footing and inability to service debts. The company lacks liquidity and operational cash flows, presenting high credit risk. Without evidence of capital support or revenue generation, credit facilities should be declined at this time.

LENAR LIMITED - Analysis Report

Company Number: 13155550

Analysis Date: 2025-07-20 16:06 UTC

1. Credit Opinion: DECLINE
   Lenar Limited’s financials indicate weak creditworthiness. The company’s net liabilities position of £1,261 as of 31 January 2024, coupled with zero current assets and no operational revenue reported, suggests an inability to service debt or meet short-term obligations. The absence of cash or other liquid assets raises significant concerns on repayment capacity. The company has limited financial history (incorporated 2021) and no evidence of growth or positive operating cash flows. This undermines resilience and increases credit risk. Management appears to have minimal resources at their disposal, and the sole director’s control is concentrated but without demonstrated financial stewardship in terms of capital injection or profitability. Overall, lending or extending credit would be high risk without substantial guarantees or collateral.

2. Financial Strength:
   The balance sheet shows no fixed or current assets and a creditor balance (long-term liabilities) of £1,261, resulting in negative net assets and shareholders’ funds of -£1,261. This indicates the company is technically insolvent on a net asset basis. The micro-entity exemption and unaudited accounts limit transparency, but the data reflects a financially fragile entity with minimal equity and no tangible asset backing. The lack of retained earnings or cash reserves further weakens the financial position.

3. Cash Flow Assessment:
   There is no reported current asset value, implying no cash or receivables to support liquidity. Current liabilities are nil, but the presence of creditors falling due after more than one year (£1,261) suggests some form of debt or obligation not currently payable but still a liability. The company’s zero employee count and no operational assets indicate it may not be generating cash flows from operations. Without cash or working capital, the company is unlikely to meet unexpected expenses or fund growth.

4. Monitoring Points:

• Track quarterly cash flow statements or bank statements (if available) for signs of liquidity improvement.
• Monitor any new capital injections or equity funding by the sole shareholder/director.
• Watch for a positive turnaround in net assets and current asset holdings in future filings.
• Observe any operational developments or client contracts that could generate revenue streams.
• Verify the status of the £1,261 creditor balance and any changes in liabilities.
• Assess director’s ongoing commitment and financial support to the company.