Company Number: 15242351

Analysis Date: 2025-07-29 15:56 UTC

1. Credit Opinion: DECLINE
   LIONSWAN LTD is a recently incorporated micro-entity with limited operating history and minimal equity (£567 shareholders’ funds). The company’s current liabilities (£17,069) substantially exceed current assets (£9,637), resulting in a negative working capital position, indicating liquidity stress. Additionally, the company carries a small long-term liability (£250). The negative net current assets reflect an inability to meet short-term obligations from available liquid resources, which raises significant credit risk. Given the absence of trading history beyond a short initial period and a weak balance sheet, extending credit would be high risk without substantial guarantees or collateral.

2. Financial Strength:
   The company’s balance sheet at 31 March 2025 shows very limited fixed assets (£7,214). Current assets of £9,637 are insufficient to cover current liabilities of £17,069, resulting in a net current liabilities position of £7,432. Shareholders’ funds are minimal at £567, indicating virtually no retained earnings or capital buffer. The existence of creditors beyond one year (£250) adds to the liabilities. Overall, the financial structure is fragile with low capitalization and poor liquidity, typical for a start-up micro entity but unsuitable for unsecured lending.

3. Cash Flow Assessment:
   The available data does not provide explicit cash flow statements, but the negative net current assets imply working capital constraints. The company’s current liabilities are nearly double current assets, reflecting potential cash flow mismatches. With only one employee on average and low assets, the company likely requires ongoing capital injection or support from directors to sustain operations. Without positive cash flow generation or external funding, the company may struggle to meet debt repayments or supplier obligations promptly.

4. Monitoring Points:

• Improvement in working capital position: watch for increase in current assets and reduction of current liabilities.
• Profitability and retention of earnings: monitor future accounts for positive reserves buildup.
• Timely filing of accounts and confirmation statements to ensure compliance and transparency.
• Changes in director/shareholder structure or large capital injections that may strengthen equity.
• Any new debt facilities or credit lines should be scrutinized for repayment capacity given current liquidity.