LIGHTBOX PROPERTY LTD

Executive Summary

Lightbox Property Ltd is a newly established property letting company with a weak financial position characterized by negative net assets and working capital shortfall. The company depends heavily on intra-group funding and lacks operational cash flow, posing significant liquidity and credit risk. Credit approval is not recommended until the company demonstrates improved profitability, liquidity, and financial stability.

LIGHTBOX PROPERTY LTD - Analysis Report

Company Number: 14737597

Analysis Date: 2025-07-29 13:44 UTC

1. Credit Opinion: DECLINE
   Lightbox Property Ltd is a newly incorporated property letting company with only one financial period completed. The company currently shows net liabilities of £1,258 and negative working capital of £1,549, indicating an immediate liquidity shortfall. Its current liabilities exceed current assets primarily due to amounts owed to group undertakings (£2,716) and accrued expenses. This suggests reliance on group funding rather than operational cash flow. Absence of profit and retained losses alongside minimal tangible assets and cash balances further weakens its ability to service new debt or credit lines. Without established revenue streams or positive cash flow, the risk of default is high at this stage. Therefore, credit approval is not recommended until significant financial improvement and operational stability are demonstrated.

2. Financial Strength:
   The balance sheet shows total net assets at negative £1,258 driven by accumulated losses since inception. Fixed tangible assets are minimal (£291) and there are no investment properties recorded. The company’s capital structure is weak with only £100 in share capital and no retained earnings. The current liabilities of £4,014, largely owed to related parties, outweigh current assets of £2,465, resulting in negative net current assets (-£1,549). This indicates poor short-term financial health and dependence on intra-group funding. The company’s financial profile reflects a startup phase with limited resources and no operational profitability yet.

3. Cash Flow Assessment:
   Cash at bank is low at £2,183 with current liabilities exceeding this by a significant margin. Debtors are minimal (£282) and likely represent receivables from related activities or initial transactions. The negative working capital position demonstrates insufficient liquidity to cover short-term obligations. Given the company is in its first year, cash inflows from operations appear minimal or non-existent. The reliance on amounts owed to group undertakings suggests cash injections from parent or related companies rather than self-generated operational cash flow. This poses a liquidity risk if group support is withdrawn.

4. Monitoring Points:

• Monitor development of revenue and profitability once trading stabilizes.
• Track cash flow trends to assess improvement in liquidity and operational funding independence.
• Monitor changes in current liabilities, especially amounts owed to group companies, to understand funding structure.
• Review future financial statements for positive net assets and working capital generation.
• Observe director and shareholder action plans for capital injections or restructuring to strengthen financial position.