Company Number: 13026588

Analysis Date: 2025-07-20 14:30 UTC

1. Credit Opinion: DECLINE
   LMGI LTD presents significant credit risk due to persistent and increasing net liabilities and negative working capital. The company’s net current liabilities worsened from -£49,692 in 2023 to -£68,810 in 2024, indicating a deteriorating liquidity position. The sizeable negative shareholders’ funds of -£65,579 reflect accumulated losses and an absence of financial buffer. Given these factors, the company is unlikely to service additional debt or meet commercial obligations reliably without external financial support or restructuring.

2. Financial Strength:
   The balance sheet reveals a consistently weak financial position over the past five years since incorporation in 2020. Fixed assets remain minimal (£3,231 in 2024), and current assets have decreased sharply from £7,483 in 2023 to £3,084 in 2024. Current liabilities have escalated sharply to £71,894, indicating heavy short-term obligations that the company cannot cover from liquid assets. Negative net assets and shareholders’ funds indicate insolvency on a balance sheet basis.

3. Cash Flow Assessment:
   The company’s working capital deficit (-£68,810) is a critical concern, indicating poor liquidity and potential cash flow constraints. The reduction in current assets and increase in current liabilities suggest the company may struggle to meet short-term creditor demands. Without evidence of positive cash flow generation or external funding, liquidity risk is high.

4. Monitoring Points:

• Monitor changes in current liabilities and working capital closely to assess liquidity trends.
• Watch for any capital injections or debt restructuring that might improve the balance sheet.
• Review cash flow statements (if available) to detect operational cash generation or deterioration.
• Keep an eye on director actions or company announcements regarding turnaround plans or insolvency warnings.