LM PROPERTY IMPROVEMENTS LIMITED

Executive Summary

LM Property Improvements Limited shows a stable and improving financial position with strong liquidity and growing equity, supporting its ability to meet short-term obligations. The company’s micro-entity status and prudent working capital management reduce credit risk. Ongoing monitoring of profitability and liabilities is recommended to maintain credit confidence.

LM PROPERTY IMPROVEMENTS LIMITED - Analysis Report

Company Number: 13880986

Analysis Date: 2025-07-20 12:41 UTC

1. Credit Opinion: APPROVE
   LM Property Improvements Limited is a recently incorporated micro-entity that demonstrates positive net asset growth with no overdue filings. The company’s balance sheet reveals a solid equity base relative to its size, and current liabilities are well covered by current assets, indicating good short-term liquidity to meet obligations. Given the absence of negative indicators such as director disqualifications or insolvency events, and stable directorship with clear ownership control, the company presents a low credit risk for its scale of operations.

2. Financial Strength:
   The company’s net assets have increased from £10,744 as of March 2023 to £14,447 as of March 2024, reflecting a strengthening equity position. Fixed assets are minimal (£230), appropriate for a service-oriented building completion business classified under SIC 43390. Current assets of £18,283 comfortably exceed current liabilities of £4,066, resulting in a strong net current asset position of £14,217. This indicates the company maintains prudent working capital management and has a healthy balance sheet for a business of micro size.

3. Cash Flow Assessment:
   Current assets predominantly consist of cash or near-cash items sufficient to cover short-term liabilities by over 4 times, implying good liquidity and capacity to service debts and operational expenses promptly. The net current asset position provides a buffer for unforeseen cash flow fluctuations. While detailed profit and loss data are unavailable, the positive trend in net assets suggests retained earnings or capital injections supporting liquidity.

4. Monitoring Points:

• Monitor the company’s revenue and profitability trends as these become available in future filings to confirm sustainable cash generation.
• Watch for changes in current liabilities, especially any significant increase that might pressure liquidity.
• Keep an eye on directors’ conduct and any changes in ownership or control that could affect governance or financial policy.
• Monitor timely filing of future accounts and confirmation statements to ensure ongoing compliance and transparency.