Company Number: 14818138

Analysis Date: 2025-07-20 14:18 UTC

Credit Opinion: DECLINE
LMHIRE LIMITED, incorporated less than a year ago, shows a negative net asset position of £7,583 as of 30 April 2024, indicating the company’s liabilities exceed its assets. This negative equity position combined with minimal financial history, no turnover or profitability data, and limited operational scale (one employee) presents a high credit risk. The company’s current liabilities (£28,540) exceed its cash balance (£20,957), resulting in a negative net current asset position of -£7,583, signaling potential liquidity challenges. Given these factors and the absence of an established trading track record, approval of credit facilities is not advisable at this stage.

Financial Strength:
The balance sheet reveals total current assets of £20,957 against current liabilities of £28,540, resulting in a net current liability position. The company has no fixed assets and no retained earnings (profit and loss reserve is negative). Shareholders’ funds are negative, reflecting accumulated losses or initial capital contributions insufficient to cover liabilities. The capital structure is weak, and there is no evidence of financial buffers or reserves to absorb shocks. Given the company is in its first financial year and has not demonstrated positive equity or asset growth, its financial strength is currently insufficient to support debt obligations.

Cash Flow Assessment:
Cash holdings stand at £20,957, which does not cover short-term liabilities of £28,540. This suggests a working capital deficit and potential cash flow constraints. No information is provided on operating cash flows, turnover, or profit margins. The negative net current assets imply the company may struggle to meet immediate obligations without additional capital injection or improved cash inflows. The single director’s occupation as HGV driver and 100% control does not provide additional assurance regarding access to external liquidity or funding sources.

Monitoring Points:

• Track subsequent filing of accounts to verify revenue generation, profitability, and improved equity position.
• Monitor cash balances against current liabilities to detect liquidity improvements or deterioration.
• Review director’s credit history and any new appointments for changes in management quality.
• Assess any future capital injections or external financing that may strengthen the balance sheet.
• Observe sector performance in freight transport by road (SIC 49410) for external market risks.