LOCKDOWN TECH LTD

Executive Summary

Lockdown Tech Ltd shows a stable but modest financial position with positive net assets and liquidity, suitable for small credit facilities. However, declining net assets and limited scale warrant conditional approval with regular monitoring of financial performance and cash flow to ensure continued creditworthiness.

LOCKDOWN TECH LTD - Analysis Report

Company Number: 12587265

Analysis Date: 2025-07-29 19:35 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Lockdown Tech Ltd is a micro-entity operating in the IT services and wholesale of computer equipment sector. The company maintains a positive net asset position and net current assets, indicating it can meet short-term liabilities. However, the declining net assets from £3,164 in 2023 to £1,966 in 2024, coupled with minimal share capital and a very small employee base, suggest limited operational scale and potential vulnerability. Approval is recommended with conditions, including close monitoring of cash flow and profitability trends, and requiring updated management accounts to assess ongoing viability.

2. Financial Strength:
   The company’s balance sheet shows net current assets of approximately £1,966 and net assets of the same amount as of 31 May 2024, down from £3,164 the previous year. This contraction points to a reduction in working capital or retained earnings. Share capital is minimal (£30), indicating that financial resilience depends heavily on operational cash flows rather than equity injections. The company’s micro status and small scale limit its ability to absorb financial shocks, but no liabilities exceed current assets, which is positive.

3. Cash Flow Assessment:
   Current assets of £4,043 against current liabilities of £2,077 provide a modest liquidity cushion. The net current assets remain positive but have decreased year-on-year. The company’s average headcount increased to 1 employee, suggesting some operational activity growth, but the lack of detailed cash flow statements prevents a full liquidity analysis. The company’s ability to service debt appears adequate for small credit lines, but working capital should be closely monitored to avoid liquidity strain.

4. Monitoring Points:

• Net asset trend: Continued erosion could indicate operational difficulties.
• Working capital position: Ensure current assets stay well above short-term liabilities.
• Profitability and cash flow: Request interim financials to assess ongoing performance.
• Director stability and conduct: No adverse records noted; maintain oversight.
• Compliance with filing deadlines: Currently up to date, maintain timely filings.