LIGHTNING CRAFT LTD

Executive Summary

LIGHTNING CRAFT LTD demonstrates a high risk profile due to ongoing negative net assets and working capital deficits, indicating potential solvency and liquidity challenges. While compliance with filing requirements and an active market presence are positives, limited financial transparency restrains confidence in operational stability. Further detailed financial and operational due diligence is essential before considering investment.

LIGHTNING CRAFT LTD - Analysis Report

Company Number: 12516390

Analysis Date: 2025-07-20 12:13 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks as evidenced by persistent negative net assets and net current liabilities over multiple years. The balance sheet shows worsening financial position, which raises concerns about the company’s ability to meet its obligations.

2. Key Concerns:

• Negative Net Assets: The company’s net assets have deteriorated from -£4,081 in 2020 to -£29,468 in 2024, indicating accumulated losses and erosion of shareholder equity.
• Negative Working Capital: Net current liabilities have increased to -£30,224 as of the latest accounts, implying the company’s current liabilities exceed its current assets by a substantial margin, creating liquidity strain.
• Lack of Audit and Limited Financial Disclosure: The company has filed micro-entity accounts without audit and has not submitted a profit and loss account, limiting transparency on operational performance and cash flows.

3. Positive Indicators:

• Timely Filing Compliance: The company is current with both accounts and confirmation statement filings, suggesting adherence to statutory obligations.
• Active Website and Business Presence: The company maintains an active website with a clear product offering in a niche market (electric boat motors), indicating operational activity and market positioning.
• Stable Directorship: Two directors hold significant control and have maintained their roles since incorporation or appointment, providing some continuity in governance.

4. Due Diligence Notes:

• Review Cash Flow and Profit & Loss Data: Obtain detailed management accounts or financial statements including P&L and cash flow forecasts to assess operational viability and liquidity management.
• Investigate Financing Arrangements: Understand the nature of liabilities and whether there are any related party loans or contingent liabilities that may affect solvency.
• Evaluate Business Model and Market Position: Analyze sales trends, order book, and competitive landscape in the electric boat motor sector to assess sustainability and growth prospects.
• Director Background Checks: Although no disqualifications are noted, a background check on directors may be prudent given financial difficulties.
• Examine Plans for Recapitalization or Restructuring: Ascertain if the company has plans or has secured additional funding to address negative equity and working capital gaps.