LIME INNOVATIONS LIMITED

Executive Summary

Lime Innovations Limited exhibits strong financial growth and liquidity since incorporation, with increasing net assets and healthy working capital. The company shows sound cash flow management and no red flags in governance or compliance, supporting a positive credit stance. Continued monitoring of receivables and tax obligations is advised to maintain financial resilience.

LIME INNOVATIONS LIMITED - Analysis Report

Company Number: 13499506

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

1. Credit Opinion: APPROVE
   Lime Innovations Limited demonstrates steady financial improvement with increasing net assets and positive working capital. The company is active and solvent, with no overdue filings or liquidation concerns. Directors hold significant control and appear stable with no adverse records. The business is in a specialized engineering consultancy sector, which generally supports sustainable revenue streams. Given the positive trend in liquidity and equity, the company is likely capable of servicing moderate credit facilities.

2. Financial Strength:
   The balance sheet shows a strong upward trend in net assets from £707 in 2021 to £34,952 in 2024. Current assets increased to £45,522, primarily driven by higher cash balances (£29,842) and trade debtors (£14,965). Current liabilities remain stable around £10,920, resulting in a healthy net current asset position of £34,602, indicating solid short-term financial stability. Tangible fixed assets are minimal (£432), reflecting low capital intensity. Shareholders’ funds have grown significantly, evidencing retained earnings and capital accumulation. Overall, the company’s financial position is robust for its size.

3. Cash Flow Assessment:
   Cash at bank has grown from £12,878 in 2021 to £29,842 in 2024, supporting liquidity and operational flexibility. Trade debtors have also increased but remain manageable relative to current liabilities, suggesting effective working capital management. The company maintains a comfortable current ratio (~4.17 in 2024), reducing liquidity risk. Dividend payments have been modest (£2,000 in 2024), preserving cash for business needs. No external debt is indicated, lowering financial risk and interest burden.

4. Monitoring Points:

• Monitor debtor aging and credit control to ensure receivables remain collectible and do not impair liquidity.
• Watch corporation tax liabilities (£4,676) and ensure timely payment to avoid penalties or cash flow strain.
• Keep track of any significant changes in working capital requirements as the business grows.
• Observe any changes in director composition or PSC that might impact governance and control.
• Review future trading performance and cash flow generation to confirm ongoing debt servicing capability.