LNJ RECORDS LTD

Executive Summary

LNJ Records Ltd is a dormant private limited company with no trading activity or meaningful financial resources. Its financial statements show nominal assets and no operational cash flow, which does not support credit extension. Until the company demonstrates consistent trading performance and financial strength, credit facilities should be declined.

LNJ RECORDS LTD - Analysis Report

Company Number: 14569594

Analysis Date: 2025-07-29 12:50 UTC

1. Credit Opinion: DECLINE LNJ Records Ltd is a very recently incorporated company (2023) that has filed dormant accounts consistently, showing minimal financial activity and assets of only £100. The lack of trading history and operational data means there is no evidence of revenue generation, profitability, or cash flow to support repayment of credit facilities. Given this, the company does not demonstrate the capacity to service debt or meet commercial obligations presently.

2. Financial Strength: The balance sheet is minimal and static over three years, reflecting dormant status with only £100 in debtors and net assets. There are no fixed assets or liabilities reported. Shareholder funds equal the nominal share capital of £100, indicating no retained earnings or accumulated reserves. The financial position is therefore extremely weak, with no buffer against financial distress or downturns.

3. Cash Flow Assessment: With no reported trading activity, cash flow generation is effectively nil. Current assets are limited to debtors of £100, and there is no indication of cash or bank balances sufficient to cover operational needs or liabilities. Working capital is positive but immaterial (£100), which does not provide meaningful liquidity for ongoing business or loan servicing.

4. Monitoring Points:

• Monitor for the commencement of trading and filing of full accounts with income, expenses, and cash flow details.
• Watch for any material increase in assets or liabilities that could affect credit risk.
• Monitor director activities and any credit references or payment histories once operations begin.
• Confirm update of company status and ensure timely filing of statutory returns to mitigate compliance risk.