LENOVER LTD

Executive Summary

LENOVER LTD holds significant property assets but is heavily leveraged with low equity and negative working capital, indicating financial fragility. Immediate focus on improving liquidity and strengthening the equity base is essential to ensure sustainability. Without intervention, the company remains vulnerable to financial shocks despite its valuable asset holdings.

LENOVER LTD - Analysis Report

Company Number: 14120472

Analysis Date: 2025-07-29 16:59 UTC

Financial Health Assessment: LENOVER LTD

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1. Financial Health Score: D

Explanation:
The company shows signs of financial strain primarily due to an unusual balance sheet structure with very low net assets (£100) despite holding significant fixed assets (£1,060,000). The presence of substantial long-term creditors (~£696,500) and negative net current assets (-£363,500) indicate a stressed liquidity position. These factors combine to suggest a fragile financial health status, warranting a below-average grade.

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2. Key Vital Signs

Metric	Value (2024)	Interpretation
Fixed Assets	£1,060,000	Healthy long-term asset base, likely property holdings given SIC codes related to real estate.
Current Liabilities	£696,500	Significant short-term obligations; a pressure point for operational liquidity management.
Net Current Assets	-£363,500	Negative working capital, meaning current liabilities exceed current assets (no current assets reported).
Total Assets Less Current Liabilities	£696,600	Indicates the net value after short-term debts, but notes large long-term creditors next.
Creditors After More than One Year	£696,500	Large long-term debt load, which may represent loans or mortgages secured against fixed assets.
Net Assets (Equity)	£100	Extremely thin equity base—barely above zero, signaling very low shareholder buffer against losses.
Shareholders Funds	£100	Matches net equity, confirms minimal capital invested or retained earnings.
Employees	0	No staff employed, typical for property holding or investment company but limits operational capacity.

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3. Diagnosis: Financial Condition Assessment

LENOVER LTD appears to be a property holding company with significant fixed assets but minimal operational activity, as evidenced by zero employees and no current assets. The company’s balance sheet shows a heavy debt structure with creditors both short-term (£696,500) and long-term (£696,500), roughly equal to the value of the fixed assets. This suggests the fixed assets are likely leveraged to finance the business.

The negative working capital (net current assets) is a symptom of liquidity stress—current liabilities exceed current assets, which means the company may struggle to meet short-term obligations without refinancing or asset sales. However, the long-term creditors balance indicates that some debt is structured over a longer term, which could provide breathing room if managed properly.

The net asset value of £100 is critically low, which is a symptom of either minimal equity capital injected or accumulated losses offsetting initial capital. This thin equity buffer represents a vulnerability to financial shocks or downturns in property values.

Overall, the company shows signs of financial fragility: a heavy debt load relative to equity, negative working capital, and no operational cash flow generation indicated by zero employees and no current assets. The business is potentially solvent but highly leveraged and exposed to liquidity risk.

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4. Recommendations: Actions to Improve Financial Wellness

• Improve Liquidity Position:
  The company should explore ways to increase current assets, such as collecting receivables (if any), or restructure short-term liabilities to longer-term debt to ease immediate cash flow pressures.

• Strengthen Equity Base:
  Consider capital injection from shareholders or profit retention policies to improve net assets, enhancing financial resilience.

• Debt Management:
  Negotiate with creditors to refinance or reduce debt burden, possibly via restructuring loan terms or partial asset disposals to reduce liabilities.

• Operational Review:
  Given zero employees and no clear operational revenues, evaluate the business model’s sustainability and explore diversification or efficiency improvements if applicable.

• Regular Monitoring:
  Implement rigorous financial monitoring to detect early signs of distress, focusing on cash flow forecasts and covenant compliance.

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Medical Analogy Summary

LENOVER LTD’s balance sheet reveals a patient with a "healthy fixed asset heart" but "symptoms of liquidity distress" due to negative working capital and a "thin equity immune system." The company is surviving but vulnerable to financial shocks, requiring immediate "treatment" through liquidity management and strengthening of its financial "defenses" to restore overall health.

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