Company Number: 13884806

Analysis Date: 2025-07-29 20:35 UTC

1. Credit Opinion: APPROVE
   Levo Group Limited demonstrates improving financial health with stable working capital and positive net assets. The company has no overdue filings and is active in the advertising sector, which can be volatile but manageable with good client diversification. Directors appear stable with no adverse records. Although the company is relatively young (incorporated 2022), it shows solid growth in current assets and equity, indicating sound financial stewardship. There are no indications of distress or liquidity issues, supporting approval for credit facilities, possibly with standard monitoring.

2. Financial Strength:
   The balance sheet reflects a strengthening position. Net assets increased significantly from £19,874 (2023) to £84,770 (2024), driven by growth in current assets, primarily debtors (from £26,341 to £128,995) and cash (£36,751 to £63,447). Tangible fixed assets increased modestly to £8,468. Current liabilities rose from £45,776 to £115,288, largely due to taxation and social security liabilities (£109,057 in 2024), which could reflect accruals or timing of payments rather than ongoing cash strain. Overall, the company has positive net current assets of £77,154 and a healthy equity base relative to liabilities.

3. Cash Flow Assessment:
   Cash at bank increased by £26,696 year-on-year, indicating improving liquidity. Debtor days should be reviewed closely given the sharp rise in trade debtors, which now represent a substantial portion of current assets. Current liabilities have also grown, but the company maintains net working capital, which suggests the ability to meet short-term obligations. Operating lease commitments are minimal (£2,283 annually). The absence of audit and detailed profit & loss information limits full cash flow analysis, but existing data suggests manageable liquidity.

4. Monitoring Points:

• Debtor collection period and ageing profile to ensure timely cash inflows and avoid liquidity pressure.
• Taxation and social security creditor balances to confirm these liabilities do not accumulate excessively.
• Profitability and cash generation metrics once more detailed accounts or forecasts are available.
• Client concentration and sector risk given the advertising agency SIC code.
• Timely submission of future accounts and confirmation statements to maintain compliance and transparency.