Company Number: OC441860

Analysis Date: 2025-07-20 16:59 UTC

1. Credit Opinion: APPROVE
   Leon Capital LLP demonstrates a solid financial position with net current assets and net assets both stable and positive. The company is active, compliant with filing deadlines, and shows no signs of distress such as overdue accounts or liabilities exceeding assets. Being a micro entity with limited liabilities and low current liabilities relative to current assets reduces credit risk. The presence of experienced designated members and no adverse director conduct records supports sound governance. Given the business's current scale and financial health, it is capable of servicing typical credit obligations.

2. Financial Strength:
   The LLP's balance sheet as of 31 March 2024 shows net assets of £214,976, slightly lower but consistent with £222,242 the prior year. Current assets total £223,714, comfortably covering current liabilities of £15,196, yielding a strong net current asset position of £208,518. Fixed assets are minimal (£6,458), reflecting a low capital intensity business model. The small but positive equity base and strong working capital provide a conservative buffer against financial shocks. The steady net assets and working capital over two years indicate stable financial footing.

3. Cash Flow Assessment:
   Current assets exceed current liabilities by a significant margin, indicating good short-term liquidity. Although detailed cash flow statements are not provided, the high net current assets imply sufficient working capital to meet operational needs and debt servicing. The lack of material short-term creditors reduces liquidity risk. The average employment level of 4 persons suggests limited payroll burden. Overall, the LLP has adequate liquidity to support ongoing trading and credit commitments.

4. Monitoring Points:

• Track any significant changes in current liabilities or assets that may erode working capital.
• Monitor turnover and profitability trends once available, to confirm operational sustainability.
• Watch for any changes in designated members or PSC interests that may affect governance.
• Review future filings for audit requirements if the company grows beyond micro thresholds.
• Assess any new borrowings or credit facilities impacting debt servicing capacity.