Company Number: 13559924

Analysis Date: 2025-07-20 18:36 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Leorenzo Limited is a micro-entity operating in real estate letting. Its balance sheet shows a stable net asset base (£119k) supported by fixed assets of £120k. The company has minimal current liabilities and a small positive net current asset position in 2024, improving from a negative working capital in 2023. However, the very limited current assets (£12k) and low net current assets (£934) indicate tight liquidity, which may constrain short-term cash flow flexibility. The absence of employees and micro-entity status suggest a lean operation with low overheads but possibly limited revenue scale. Given the short company history (incorporated 2021) and modest financial size, credit should be extended cautiously, with conditions on monitoring liquidity and operational cash flows.

2. Financial Strength:
   The company’s net assets increased from £112,848 in 2023 to £119,066 in 2024, primarily due to stable fixed assets and improved working capital. The asset base is heavily weighted towards fixed assets (£120k), which likely represent property or long-term leases typical for the SIC code (68209). The equity base is solid relative to liabilities, with no long-term debt reported. The balance sheet is sound but shows limited current asset coverage, indicating that the company relies on its capital base rather than liquid assets to meet obligations.

3. Cash Flow Assessment:
   Current assets increased from zero in 2023 to £12,218 in 2024, improving liquidity, but current liabilities also increased to £13,152. The resulting net current assets of £934 is positive but marginal, suggesting working capital is tight. Given no employees and presumably low operating expenses, cash flow demands may be limited, but the company should maintain close control of receivables and payables to avoid liquidity stress. There is no available information on cash flow from operations or profitability, which would be important for a fuller assessment.

4. Monitoring Points:

• Track working capital trends closely, ensuring current assets continue to exceed current liabilities.
• Monitor any increase in current liabilities or fixed asset acquisitions that might strain liquidity.
• Assess cash flow from operations when available, especially rental income stability and collection.
• Review any changes in company size or operational scale that could impact financial flexibility.
• Confirm timely filing of accounts and confirmation statements to avoid compliance risk.