Company Number: 12686070

Analysis Date: 2025-07-29 14:15 UTC

1. Risk Rating: MEDIUM
   LICMIK LIMITED shows a strong asset base primarily in fixed assets, but its capital structure and current liabilities pose moderate solvency and liquidity risks. The company maintains positive net assets and shareholder funds, but significant current liabilities relative to current assets and a large long-term creditor balance warrant caution.

2. Key Concerns:

• High Current Liabilities vs. Low Current Assets: Current assets (£10,665) are significantly outweighed by current liabilities (reported inconsistently but appearing as either £1,242,588 or £417,770 within one year), which raises liquidity concerns and potential cash flow pressure to meet short-term obligations.
• Large Long-term Creditors: Creditors due after one year stand at £1,242,588, indicating considerable debt that the company must service, increasing solvency risk if cash generation is weak.
• No Employees Reported: The company reports zero employees, which could indicate limited operational capacity or reliance on directors, suggesting potential operational sustainability issues if business growth or management bandwidth is constrained.

3. Positive Indicators:

• Increasing Net Assets and Shareholders’ Funds: Net assets increased from £46,036 in 2023 to £85,719 in 2024, reflecting an improving equity position.
• Stable Fixed Asset Base: Fixed assets remain consistent at approximately £1.7 million over the past three years, suggesting stability in core business assets (likely real estate given SIC code 68209).
• Timely Filing and Compliance: Accounts and confirmation statements are up to date with no overdue filings, indicating good regulatory compliance and governance.

4. Due Diligence Notes:

• Clarify the nature and terms of the current and long-term liabilities to assess repayment schedules and cash flow impact, especially reconciling the apparent discrepancy in current liabilities figures.
• Investigate the company’s revenue generation and cash flow dynamics given the micro-entity status and lack of employees to understand operational viability.
• Review director conduct and related party transactions, as both directors share the same address and are significant controllers, to identify any governance risks or conflicts of interest.
• Confirm the valuation and liquidity of fixed assets (likely real estate) to assess their usability as collateral or for refinancing if required.