Company Number: 12676270

Analysis Date: 2025-07-20 14:59 UTC

1. Credit Opinion: CONDITIONAL APPROVAL. Lisgo Construction Ltd is a micro-entity in the specialized construction sector with a short operating history since incorporation in 2020. The company is currently active and compliant with filing deadlines. While the net asset position remains positive, there has been a notable decline in net assets and shareholders’ funds from £6,611 in 2023 to £4,295 in 2024, driven mainly by increased accruals and deferred income (£4,730 in 2024 up from £1,800 in 2023). This suggests some pressure on working capital. The directors have kept the business solvent, but the reduction in equity and fluctuations in current liabilities advise caution. Approval is recommended with conditions including regular monitoring of liquidity and working capital management.

2. Financial Strength: The balance sheet shows modest fixed assets (£8,192 in 2024) and current assets of £3,069. Current liabilities are £2,236, yielding positive net current assets of £833 in 2024, an improvement over the negative position in prior years. However, the company’s net assets decreased by approximately 35% year-on-year, largely due to an increase in accruals and deferred income, which might represent income received in advance or costs accrued but unpaid, affecting liquidity. Shareholders’ funds at £4,295 are low but positive, typical for a micro entity. The company’s capital base is minimal (£1 share capital), so reliance on internal cash generation and management of payables/receivables is critical.

3. Cash Flow Assessment: Cash balances have fluctuated historically, with £477 cash reported in 2023 and not explicitly stated in 2024 accounts, but current assets increased mainly due to other current assets beyond cash. The company’s working capital position improved to positive in 2024 from negative in 2023, indicating better short-term liquidity. However, the increase in accruals and deferred income could pressure cash flow if these represent obligations to be settled shortly. The average employee count is 1 (including directors), which reduces overhead but also suggests limited operational scale and cash buffer. Close attention to cash flow forecasting and prompt collection of receivables is advisable.

4. Monitoring Points:

• Monitor net current assets and working capital trends quarterly to detect any liquidity stress.
• Watch accruals and deferred income closely to understand timing and nature of these liabilities.
• Track profit margins and revenue visibility in future filings to assess sustainability.
• Review director conduct and any changes in management or ownership that could affect governance.
• Ensure continued compliance with filing deadlines to avoid penalties or regulatory concerns.