Company Number: 13131542

Analysis Date: 2025-07-20 14:41 UTC

1. Credit Opinion: APPROVE with monitoring.
   Lioncorp-Craneparts Ltd demonstrates a solid liquidity position and positive net assets with improving working capital. The company has shown consistent growth in net current assets and shareholders’ funds over the last three years, reflecting sound financial management. However, the company is relatively young (incorporated 2021) and operates in a niche wholesale sector, so credit limits should be conservative initially, with ongoing monitoring recommended.

2. Financial Strength:
   The balance sheet shows modest fixed assets (£3,612) offset by strong current assets (£747,445) as of 31 March 2024. The company’s net current assets increased to £192,176 in 2024 from £143,533 in 2023, indicating improving liquidity and working capital management. Net assets also grew year-on-year, reaching £195,697, supported by retained profits rather than share capital (only £1 share capital). The company carries a manageable level of current liabilities (£555,269), which is comfortably covered by current assets. No long-term liabilities or provisions apart from a small deferred tax liability are reported.

3. Cash Flow Assessment:
   Cash balances remain strong and stable (£222,417 in 2024 vs £220,234 in 2023), supporting day-to-day operations and short-term obligations. Debtors at £152,485 are reasonable relative to cash and stock levels, though some attention should be paid to debtor collection periods to avoid liquidity strain. Stock levels have increased significantly to £372,543 (2024) from £77,749 (2023), which may tie up cash but likely reflects business growth or inventory buildup for anticipated sales. Overall, the company maintains adequate liquidity and working capital to meet current obligations.

4. Monitoring Points:

• Debtor turnover and ageing to ensure timely collection.
• Stock levels relative to sales to avoid overstocking or obsolescence risk.
• Continued profitability and cash generation, especially given the company’s young age.
• Any changes in current liabilities that could impact liquidity.
• Economic conditions affecting wholesale machine tools sector and any supply chain risks.
• Director conduct and ownership stability, currently controlled by Mr Vincent Wells.