LIGHTHUB DEVELOPMENTS LTD

Executive Summary

Lighthub Developments Ltd currently faces high solvency and liquidity risks due to substantial current liabilities far exceeding readily available assets. While the company holds investment property as a key asset and maintains compliance with filing requirements, its operational activity appears minimal and heavily reliant on related party funding. Detailed due diligence on creditor arrangements and asset realisability is advised to better understand financial stability.

LIGHTHUB DEVELOPMENTS LTD - Analysis Report

Company Number: 13372522

Analysis Date: 2025-07-29 20:07 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns as evidenced by persistent large net current liabilities far exceeding current assets. The creditor balances are substantial relative to cash and debtors, and net current liabilities have remained markedly negative over multiple years.

2. Key Concerns:

• Severe Liquidity Shortfall: Current liabilities (£747,739) vastly exceed current assets (£16,476) and cash reserves (£15,451), resulting in negative net working capital (~£-731k) at the latest year end. This is a critical cash flow risk.
• High Reliance on Related Party Funding: A large portion of creditors are amounts owed to participating interests (£439,954), indicating dependency on related party financing which may not be sustainable or on market terms.
• Limited Operational Activity: The company has no employees and minimal debtors, suggesting an absence of active trading operations and possible reliance solely on investment property income, which may not cover liabilities adequately.

3. Positive Indicators:

• Investment Property Asset Base: The company holds investment property valued at approximately £770k, which is a tangible asset that could potentially be realised to address liabilities.
• No Overdue Filings: Accounts and confirmation statements are up to date, indicating regulatory compliance and good governance in terms of statutory obligations.
• Stable Shareholders’ Funds Growth: Equity has increased from £757 in 2021 to £38,717 in 2024, reflecting some retained earnings accumulation.

4. Due Diligence Notes:

• Investigate the terms, security, and repayment expectations of the amounts owed to participating interests to assess funding risk and creditor hierarchy.
• Assess cash flow projections and rental income stability from the investment property to evaluate the company’s ability to meet ongoing liabilities.
• Review any contingent liabilities or off-balance sheet obligations not disclosed in the accounts.
• Confirm the market value and liquidity of investment property assets, including any restrictions on sale or encumbrances.
• Examine the background and conduct records of directors for any risks, although no disqualifications are apparent here.