Company Number: 14149747

Analysis Date: 2025-07-29 16:08 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   LIA LEWIS LTD is a recently incorporated private limited company operating in the "Other Sports Activities" sector. The company is active, compliant with filing deadlines, and maintains a positive net asset position. However, a noticeable decline in net current assets and cash balances in the latest financial year suggests some liquidity tightening. Given the limited operational history (just over two years) and modest scale (one employee), approval is recommended with caution, subject to ongoing monitoring of liquidity and working capital management.

2. Financial Strength:
   The company shows modest but positive net assets of £61,932 as at 30 June 2024, down from £101,272 the prior year. Shareholders' funds mirror net assets, indicating no external long-term debt. The balance sheet is simple with no fixed assets reported, suggesting limited capital investment and a lightweight structure. Current liabilities are manageable at £56,025 and consist primarily of trade creditors, VAT, and taxes/social security. The reduction in net current assets from £101k to £62k, primarily due to a decline in cash from £175k to £118k, indicates a contraction in working capital.

3. Cash Flow Assessment:
   Cash on hand remains positive at £117,957, sufficient to cover current liabilities of £56,025 nearly twice over, which supports short-term liquidity. The company’s cash reduction over the year warrants investigation into operational cash flows, but there is no indication of immediate cash flow distress. The working capital remains positive, providing a cushion for day-to-day operations. With only one employee, fixed overheads are likely low, reducing cash burn risk. However, absence of detailed profit and loss data limits full cash flow analysis.

4. Monitoring Points:

• Liquidity trends: Watch cash balances and net current assets for further decline.
• Receivables and payables aging: Ensure timely collection and payment cycles to maintain working capital.
• Profitability: Obtain future profit and loss data to confirm sustainable earnings supporting cash flow.
• Business growth: Monitor contract wins or revenue growth indicators given the niche sports activity sector.
• Director conduct and governance: No adverse records; maintain oversight.