Company Number: 12991970

Analysis Date: 2025-07-20 14:37 UTC

1. Credit Opinion: DECLINE
   Lizzytom Limited shows a concerning financial position as of the latest accounts dated 30 November 2023. The company’s net current assets have deteriorated significantly from a positive £2,808 in 2022 to a negative £4,980 in 2023, indicating liquidity stress and potential difficulty in meeting short-term obligations. The total net assets have swung from positive £464 to a negative £2,362, reflecting an erosion of shareholder funds and possible losses. The micro-entity size and limited share capital (£100) do not provide a buffer for financial distress. Given these indicators, the company currently lacks adequate financial strength to support additional credit without significant mitigating factors or security.

2. Financial Strength:
   The balance sheet reveals a decline in fixed assets from £3,272 to £2,618, hinting at disposals or depreciation without asset replacement. Current assets are minimal (£845), while current liabilities have more than doubled from £2,808 to £5,825, severely impacting working capital. The net asset position turning negative indicates the company is technically insolvent on a balance sheet basis. The absence of retained earnings or reserves (capital and reserves negative) further weakens financial resilience.

3. Cash Flow Assessment:
   While detailed cash flow data is not available, the negative net current assets strongly imply working capital deficits and strained liquidity. The company’s ability to cover short-term debts is impaired, increasing reliance on external funding or owner support. The average number of employees remains stable at three, suggesting operating scale has not changed, but potentially fixed overheads may be high relative to revenues or cash inflows. Without improvement in current assets or reduction in liabilities, cash flow risks are significant.

4. Monitoring Points:

• Short-term liquidity ratios (current ratio, quick ratio) in subsequent filings
• Profitability trends and turnover to assess operational improvements
• Changes in creditor days or payment behavior
• Directors’ commentary on plans to restore financial health or restructure liabilities
• Any new capital injections or guarantees from the principal shareholder
• Filing of subsequent accounts and confirmation statements on time