L.KANTOR LTD

Executive Summary

L.KANTOR LTD is an early-stage micro-entity in real estate with significant fixed asset investment but negative net assets and a working capital deficit. The business has potential but currently faces liquidity challenges requiring close monitoring of cash flows and liabilities. Conditional credit approval is recommended with emphasis on financial performance tracking and covenant adherence.

L.KANTOR LTD - Analysis Report

Company Number: 15161632

Analysis Date: 2025-07-20 17:37 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   L.KANTOR LTD is a newly incorporated micro-entity engaged in real estate operations. While the company currently shows negative net assets (£13,478 deficit) and significant long-term liabilities (£320,533), this is not unusual for a startup investing in fixed assets early on. Conditional approval is recommended, subject to monitoring cash flows and asset utilization. The absence of overdue filings and two directors with relevant experience support ongoing compliance and governance.

2. Financial Strength:
   The balance sheet shows fixed assets of £434,208, indicating capital investment likely in property assets aligned with their SIC codes. However, current assets are minimal at £12,293 against current liabilities of £139,446, resulting in a working capital deficit of £127,153. The total creditors exceeding fixed assets after current liabilities result in net liabilities of £13,478. This suggests limited financial buffer and potential solvency risk if cash flow does not improve.

3. Cash Flow Assessment:
   Current liabilities far exceed current assets, indicating liquidity constraints. The company’s ability to service short-term obligations will depend heavily on incoming rental income or asset sales, which are not detailed here. The negative working capital position is a concern but may be manageable if the fixed assets generate steady cash flows. Monitoring cash generation and debtor collection will be critical.

4. Monitoring Points:

• Improvement in net current assets and liquidity ratios.
• Timely repayment or restructuring of long-term liabilities (£320k).
• Revenue generation and cash flow from property lettings or sales.
• Directors’ ability to manage growth and control costs as the business matures.
• Compliance with filing deadlines and any changes in shareholding or director appointments.