LG FARRIERY LTD

Executive Summary

LG Farriery Ltd is a newly established micro-entity with a solid initial balance sheet and positive working capital, indicating good short-term financial health. The company is currently low risk for credit exposure, though limited trading history necessitates ongoing monitoring of cash flow and operational progress. Overall, credit facilities can be approved with standard oversight given the stable financial footing and absence of adverse factors.

LG FARRIERY LTD - Analysis Report

Company Number: 15220272

Analysis Date: 2025-07-20 14:08 UTC

1. Credit Opinion: APPROVE - LG Farriery Ltd is a newly incorporated micro-entity with a positive net asset base and working capital, indicating initial financial stability. The company’s micro size and single director structure limit complexity and risk. Although trading history is short (just over one year), the financials show sound capitalisation and liquidity to support ongoing operations and debt servicing. Given no overdue filings and no adverse director conduct records, the credit risk is low for modest credit facilities.

2. Financial Strength: The company holds fixed assets of £11,958 and current assets of £55,732, against current liabilities of £38,683, resulting in net current assets of £17,683. Total net assets are £28,163, fully represented by shareholders’ funds, reflecting no external debt or negative equity. The balance sheet is clean and straightforward, typical of a micro-entity with limited operational scale but adequate capitalization for its business scope.

3. Cash Flow Assessment: The positive net current assets indicate sufficient short-term liquidity to cover liabilities due within the year. Cash or cash equivalents form part of current assets, which along with the absence of long-term debt, suggests the company can meet short-term obligations. However, as a start-up entity with only one employee and limited trading history, ongoing cash flow monitoring is essential to ensure working capital remains positive as the business expands.

4. Monitoring Points:

• Track revenue growth and profitability in subsequent periods to validate sustainable cash flow generation.
• Monitor current liabilities and creditor days to prevent liquidity strains.
• Watch for any material changes in director or ownership structure that could impact operational continuity.
• Ensure timely filing of accounts and confirmation statements to maintain regulatory compliance.
• Evaluate impact of any external economic factors on demand for farriery support services.