Company Number: 14487226

Analysis Date: 2025-07-29 13:53 UTC

1. Credit Opinion: APPROVE with monitoring.
   LGZ Quality Services Ltd shows a strong turnaround in its financial position from the previous year with net assets improving from a negative £2,559 to a positive £15,512. This indicates improved capitalization and an ability to cover short-term liabilities. Given the company is newly incorporated (2022) and operates in a niche sector (supplier qualification in pharmaceuticals), its current financial health supports credit approval for modest facilities. However, ongoing monitoring is advised due to the company’s young age and limited financial history.

2. Financial Strength:
   The balance sheet as of 30 November 2024 shows current assets of £24,705 against current liabilities of £9,193, resulting in net current assets (working capital) of £15,512. The company has no fixed assets reported, consistent with a service-based model. Shareholders’ funds have strengthened to £15,512 from a negative position the prior year, reflecting retained earnings or capital injection. The micro-entity status limits detailed disclosures, but the positive net assets and working capital position indicate sound financial footing for a small enterprise.

3. Cash Flow Assessment:
   The current assets primarily consist of cash and equivalents or receivables, with no indication of stock or prepayments this year. The positive net current assets provide a buffer to meet short-term obligations. The company’s ability to maintain positive working capital after only two years of operation suggests adequate liquidity. However, absence of detailed cash flow statements means reliance on balance sheet data; close review of operating cash flows going forward is recommended to confirm sustainable liquidity.

4. Monitoring Points:

• Continued profitability and maintenance of net positive working capital, especially as the company scales.
• Debtor collection periods and cash conversion cycles to ensure liquidity does not deteriorate.
• Changes in directors or significant control that might affect governance or financial strategy.
• Industry conditions and regulatory environment in pharmaceutical supplier qualification, which could impact demand.
• Timely filing of accounts and confirmation statements to ensure compliance and transparency.