LIFTING LEVELS LIMITED

Executive Summary

Lifting Levels Limited is a micro-entity with persistent working capital deficits and very limited equity, leading to weak short-term financial strength and liquidity risk. The company’s current financial profile does not support comfortable debt servicing or credit extension. Continuous monitoring of liquidity position and equity levels is essential before reconsidering credit exposure.

LIFTING LEVELS LIMITED - Analysis Report

Company Number: 14195114

Analysis Date: 2025-07-20 18:28 UTC

1. Credit Opinion: DECLINE
   Lifting Levels Limited shows persistent negative net current assets, indicating a working capital deficiency which compromises short-term liquidity. The micro-entity's fixed assets and shareholders' funds are minimal (£712 and £100 respectively as of June 2024), reflecting a very modest capital base. The company’s financial position has slightly weakened from the prior year, with current liabilities increasing and current assets not sufficiently covering short-term obligations. Given these factors, the company is unlikely to comfortably meet debt repayments or absorb financial shocks, making credit approval unsuitable at this time.

2. Financial Strength:
   The balance sheet shows very limited tangible assets and an ongoing net current liability position (negative working capital of £612 in 2024, marginally improved from £827 in 2023). Shareholders’ funds have decreased from £135 to £100, signaling erosion of equity. The total assets less current liabilities remain positive but very low (£100), indicating minimal buffer against liabilities. The company’s micro classification and only one employee further imply limited operational scale and financial resilience.

3. Cash Flow Assessment:
   Current liabilities exceed current assets significantly, raising concerns over liquidity and the ability to settle short-term debts. The company relies heavily on external funding or shareholder support to bridge the working capital gap. Given the small cash and debtor balances (£691 current assets in total) against £1,303 in creditors, the liquidity risk is high. No audit or detailed cash flow statement is available, limiting further analysis, but the presented data suggest constrained cash flow.

4. Monitoring Points:

• Net current assets position and liquidity ratios (current ratio, quick ratio) for signs of improvement
• Equity levels to monitor erosion or recapitalization
• Timeliness and completeness of statutory filings to assess ongoing compliance and governance
• Any changes in management strategy or capital structure that may strengthen financial position
• Cash flow statements on future filings to better evaluate operational cash generation