LNS PROPERTY LIMITED

Executive Summary

LNS PROPERTY LIMITED demonstrates significant liquidity and solvency risks due to its negative working capital, large creditor balances, and minimal equity. While statutory compliance is maintained and fixed assets are stable, the financial structure suggests vulnerability without further capital support or improved cash flow. A thorough review of creditor terms and operational cash flow is recommended to ascertain ongoing viability.

LNS PROPERTY LIMITED - Analysis Report

Company Number: 13041634

Analysis Date: 2025-07-20 12:03 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits significant liquidity issues, with consistently negative net current assets and a substantial current liabilities burden relative to its minimal current assets. Although the fixed assets base is sizeable, heavy short-term and long-term creditor obligations and marginal net equity suggest financial stress and potential solvency risk.

2. Key Concerns:

• Liquidity Deficit: As of the latest accounts, net current assets stand at approximately -£205,835, indicating the company does not have sufficient short-term assets to cover its immediate liabilities, raising cash flow concerns.
• High Long-Term Creditors: Creditors due after more than one year total around £328,781, which is large relative to net assets of only £5,467, implying reliance on external funding and potential refinancing risk.
• Minimal Equity and Share Capital: Share capital is nominal (£1.00), and shareholders’ funds are very low (£5,467), suggesting limited capital buffer to absorb losses or fund operations without external financing.

3. Positive Indicators:

• Consistent Fixed Asset Base: Fixed assets have remained stable at £545,933, indicating maintained investment in real estate assets aligned with their SIC codes for property letting and trading.
• Up to Date Filings: Both accounts and confirmation statement are filed on time with no overdue filings, reflecting compliance with statutory requirements.
• No Employees: The company currently operates without employees, potentially keeping operating costs low and manageable.

4. Due Diligence Notes:

• Investigate the nature and terms of the company's creditor arrangements, especially the large amounts due after one year, to assess refinancing risk and covenant compliance.
• Review detailed cash flow statements and management accounts to understand operational cash generation or reliance on external funding.
• Clarify the business model and revenue streams, given the minimal current assets and negative working capital, to evaluate operational sustainability.
• Confirm whether any related party transactions exist, especially given the small equity base and director occupancy at the registered address.
• Assess the directors’ plans or strategies to improve liquidity and solvency, including any capital injections or asset disposals.
• Verify absence of director disqualifications or regulatory issues, although none are indicated in current data.