LIGHTNING COMPETITIONS UK LIMITED

Executive Summary

Lightning Competitions UK Limited demonstrates a sound liquidity position and compliance with filing requirements for its first year of operation. However, the material deferred income liability and limited financial history introduce some uncertainty regarding future cash flow and operational stability. Further due diligence on deferred income and cash flow projections is advisable to better gauge solvency risk.

LIGHTNING COMPETITIONS UK LIMITED - Analysis Report

Company Number: 14654784

Analysis Date: 2025-07-29 16:55 UTC

1. Risk Rating: LOW to MEDIUM
   Given the company's recent incorporation in early 2023 and the financial snapshot available, Lightning Competitions UK Limited currently presents a low to medium risk profile. The company shows positive net current assets and no overdue filings, but the limited financial history and presence of significant deferred income warrant cautious monitoring.

2. Key Concerns:

• Deferred Income Liability: The company has £67,600 in accruals and deferred income, which represents a material liability relative to net assets (£24,355). This could pressure future cash flows if not properly managed.
• Limited Operating History: Having been incorporated less than two years ago, the company lacks an extended track record, which limits the ability to assess operational and financial stability over time.
• Micro-Entity Status and Lack of Audit: As a micro-entity using the small companies’ regime, the company benefits from reduced disclosure requirements and is unaudited. This limits transparency and the depth of financial information available for risk assessment.

3. Positive Indicators:

• Strong Net Current Assets Position: Current assets significantly exceed current liabilities by approximately £88,653, indicating good short-term liquidity on the balance sheet date.
• No Overdue Filings or Compliance Issues: The company is up to date with both accounts and confirmation statement filings, suggesting sound regulatory compliance and governance practices to date.
• Controlled Shareholding and Board Structure: Both directors hold equal control (25-50% shares and voting rights) and have legal responsibilities, which may enhance governance and decision-making stability.

4. Due Diligence Notes:

• Assess Deferred Income Details: Investigate the nature and timing of the £67,600 deferred income to understand its impact on future revenues and cash flow requirements.
• Review Cash Flow Statements and Projections: Obtain any available management accounts or cash flow forecasts to evaluate liquidity beyond the balance sheet snapshot.
• Director Background Checks: Confirm the professional and reputational standing of the directors, given their significant control and dual role as company secretaries.
• Understand Business Model and Market Position: Given the SIC code 93199 (Other sports activities), clarify the company’s operational scope, revenue streams, and competitive environment to assess sustainability.