LITHIONSIM LTD

Executive Summary

Lithionsim Ltd is a recently established dormant company with no trading activity in its first year, reflecting a start-up phase rather than an operating business. Its financial health is stable but untested, with minimal equity and no liabilities. To improve its financial wellness, the company should focus on initiating trading, building capital, and implementing sound financial controls as it moves from dormancy to active operations.

LITHIONSIM LTD - Analysis Report

Company Number: NI696107

Analysis Date: 2025-07-29 18:59 UTC

Financial Health Assessment of Lithionsim Ltd

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1. Financial Health Score: D (Dormant / Early Stage)

• Explanation: Lithionsim Ltd is a newly incorporated company (April 2023) and is classified as dormant for its first financial year ending April 2024. The company has not conducted any trading activity, generated revenue, or incurred expenses during this period. This early-stage dormancy means there are no operational financial data to evaluate profitability, liquidity, or solvency. While the company is compliant with filing requirements and maintains a minimal equity base, the absence of financial activity limits the ability to assess operational health. The score reflects a "waiting room" status rather than active financial wellness.

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2. Key Vital Signs

Metric	Value	Interpretation
Status	Active	Company is legally registered and operational, not in liquidation or dormant status.
Account Category	Dormant	No significant financial transactions, no income or expenses during the period.
Shareholders Funds	£1	Minimal equity representing a single share issued; indicates start-up capital only.
Debtors (Current Assets)	£1	Nominal amount, likely minimal or placeholder figure.
Profit/Loss	£0	No trading activity, no profit or loss recorded.
Filing Status	Up to date	Accounts and confirmation statement filed on time, no penalties.
Director/PSC Control	1 director (Shaun McBride) with full control	Concentrated ownership and control, typical in startups.
Industry	Engineering Consulting (SIC 71122)	Sector with potential for technical consulting growth; currently untested financially.

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3. Diagnosis

Lithionsim Ltd exhibits the "symptoms" of a very early-stage company with no active trading during its initial year. The "vital signs" show no financial distress or liquidity concerns because the company has not yet engaged in commercial activities. This is akin to a patient in the initial check-up stage, with baseline vital signs (equity and registration) but no activity to stress-test the system.

The company’s single share capital of £1 and dormant status indicate the business is in incubation or setup phase. There are no liabilities or operational cash flows to analyze, so the financial health cannot be fully assessed beyond compliance and structural soundness.

The sole director and person of significant control holds all voting rights and decision-making power, a common situation in early private limited companies. This central control means strategic decisions can be made swiftly but also concentrates risk if not managed prudently.

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4. Recommendations

• Initiate Trading Operations: To move beyond dormancy and begin generating revenue, the company should develop a clear business plan to activate commercial activities aligned with its engineering consulting sector. This will produce critical financial data for ongoing health monitoring.

• Maintain Compliance: Continue timely filing of accounts and confirmation statements to avoid regulatory penalties and maintain a clean record.

• Build Capital and Working Capital Cushion: As operations commence, consider increasing equity or arranging short-term finance to ensure healthy cash flow for initial expenses and growth phases.

• Implement Financial Controls: Once trading starts, establish basic accounting and cash flow monitoring systems to detect any "symptoms" of distress early—such as cash shortages or delayed payments.

• Consider Additional Expertise: As the company grows, consider appointing additional directors or advisors to diversify oversight and strengthen governance.

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