LMASTORES LTD

Executive Summary

LMASTORES LTD is a recently incorporated micro-entity with significant negative net assets and working capital deficits, highlighting high solvency and liquidity risks. While statutory compliance is maintained, the lack of operational scale and financial robustness raises concerns about sustainability without additional capital support. Further due diligence on business operations, financial plans, and director backing is recommended to better understand the company’s risk profile.

LMASTORES LTD - Analysis Report

Company Number: 14470194

Analysis Date: 2025-07-29 14:34 UTC

1. Risk Rating: HIGH
   The company shows clear signs of financial distress with net liabilities and negative shareholder funds shortly after incorporation, indicating a high solvency risk.

2. Key Concerns:

• Negative Net Assets: The company has net liabilities of £714, indicating it owes more than it owns.
• Working Capital Deficiency: Current liabilities (£416) significantly exceed current assets (£1), resulting in negative net current assets (-£415), which suggests liquidity issues.
• Limited Operating History and Scale: Incorporated in late 2022 with only one employee and minimal turnover data, providing little evidence of operational stability or revenue generation.

3. Positive Indicators:

• No Overdue Filings: Both accounts and confirmation statement filings are up to date, reflecting compliance with statutory requirements.
• Single Controlling Shareholder: The sole shareholder and director has full control which can facilitate decisive management actions.
• Micro-Entity Status: The company benefits from simplified accounting and reporting requirements appropriate for its size.

4. Due Diligence Notes:

• Business Model and Revenue Streams: Investigate the company’s business activities and revenue generation plans given the micro-entity classification and minimal current assets.
• Director’s Financial Support: Assess whether the controlling director has injected or plans to inject further capital or provide guarantees to support solvency.
• Creditor Profile and Terms: Understand the nature of current liabilities and creditor relationships to evaluate liquidity risk and potential for restructuring.
• Future Cash Flow Projections: Obtain forecasts or budgets to assess whether the company can cover short-term liabilities and move towards profitability.
• Background Check on Director: While no negative records are apparent, further due diligence on director’s business track record could provide insight into governance and operational risk.