LIFESTYLE HOME COLLECTION LTD

Executive Summary

Lifestyle Home Collection Ltd is a start-up micro entity with a weak financial position characterized by negative equity, negative cash, and reliance on director loans. The company currently lacks the financial strength and cash flow to justify credit approval. Close monitoring of cash flow, trading progress, and financial filings is essential before reconsidering credit facilities.

LIFESTYLE HOME COLLECTION LTD - Analysis Report

Company Number: 15041368

Analysis Date: 2025-07-29 14:55 UTC

1. Credit Opinion: DECLINE
   Lifestyle Home Collection Ltd is a newly incorporated private limited company with minimal operational history and no employees. The most recent accounts show net liabilities of £90, negative cash of £16, and current liabilities of £74, which are director loans. The company is clearly undercapitalized with negative working capital and shareholders’ funds. There is no evidence of trading profit or positive cash flow to service debt. Given its early stage, negative equity, and reliance on director loans, the company currently lacks the financial strength and track record to support additional credit facilities. Approval would be premature without substantial improvement in financial position or business performance.

2. Financial Strength: Weak
   The balance sheet shows net current liabilities of £90 and negative net assets/shareholders’ funds of the same amount. The company has no fixed assets or tangible net worth and is fully reliant on director loans to fund operations. Negative cash at bank and absence of profit reserves are concerning. This indicates fragile financial structure with no buffer to absorb operational shocks. The company is classified as micro entity and exempt from audit, limiting the depth of assurance on reported figures.

3. Cash Flow Assessment: Insufficient
   Operating cash flow cannot be assessed from the available data, but negative cash balance and director loans imply cash shortfalls. No employees or operating revenue reported, so the company is likely in a start-up or pre-trading phase. The negative working capital position indicates ongoing or imminent liquidity risk, with creditors relying solely on director funding. Without positive cash inflows or external financing, the company’s ability to meet obligations in the short term is doubtful.

4. Monitoring Points:

• Monitor quarterly cash flow and working capital improvements as company develops trading activity.
• Watch for filing of next annual accounts to assess revenue, profitability, and cash generation trends.
• Track any increases in director loans or external financing that may indicate liquidity pressures.
• Review any changes in ownership/control or director appointments that might affect governance or financial support.
• Observe compliance with filing deadlines and any material changes in business model or market conditions.