Company Number: 13272389

Analysis Date: 2025-07-20 16:39 UTC

1. Credit Opinion: DECLINE. Lighthouse Construction North West Limited shows significant liquidity concerns with persistent net current liabilities and a notably negative working capital position that deteriorated from £-19,694 in 2021 to £-78,811 in 2024. The company's micro-entity status and small share capital (£2.00) limit its financial flexibility. The lack of profitability data and minimal equity buffer increase the risk that it cannot comfortably meet short-term obligations or service new credit facilities. Without evidence of improved cash flow or external financial support, extending credit is not advisable at this stage.

2. Financial Strength: The balance sheet shows fixed assets increasing moderately from £27,656 in 2021 to £82,936 in 2024, indicating some investment in plant or equipment. However, current assets (£56,771) remain substantially lower than current liabilities (£135,582), leading to a net current liability position that worsens year-over-year. Shareholders’ funds have decreased from £7,962 in 2021 to £4,125 in 2024, reflecting erosion of equity possibly due to operating losses or dividend payments. The company is undercapitalised relative to its liabilities and exhibits weak financial resilience.

3. Cash Flow Assessment: Working capital is negative and deteriorating, suggesting cash is insufficient to cover immediate liabilities. The current assets position is low relative to creditors due within one year, which raises concerns about liquidity and the ability to fund ongoing operations without external support. The absence of detailed profit and loss or cash flow data limits the assessment, but the balance sheet trends imply cash flow constraints that could impair debt servicing and supplier payments.

4. Monitoring Points:

• Watch for improvement in net current assets and working capital position.
• Monitor cash flow statements (when available) for operational cash generation.
• Track any changes in share capital or injections of external funds.
• Observe timely payment of creditors and any overdue filings or defaults.
• Review any changes in director or PSC positions that might indicate governance or control shifts.