Company Number: 13261046

Analysis Date: 2025-07-29 16:50 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Lomax Reclamation Limited shows improving financial stability with increased net assets from £73,447 in 2023 to £123,395 in 2024. The company demonstrates capacity to meet short-term obligations with positive net current assets (£8,550) and a growing asset base. However, the business is relatively young (incorporated 2021) and operates in a non-specialised retail sector, which can be competitive and sensitive to economic fluctuations. Given limited historical data and unaudited accounts, credit facilities should be granted with conditions on regular financial monitoring and covenant reporting.

2. Financial Strength:
   The balance sheet indicates strengthening financial health. Fixed assets doubled from £56,174 to £114,845, suggesting investment in long-term resources. Current assets slightly decreased but remain robust (£160,577), with debtors stable (~£40k). Current liabilities decreased marginally to £152,027. Net current assets remain positive, supporting working capital needs. Shareholders’ funds grew significantly to £123,395, reflecting retained earnings and equity build-up. The low share capital (£2) is typical for small private companies but equity backing appears sound.

3. Cash Flow Assessment:
   Working capital is positive but modest at £8,550, down from £17,273 the prior year, indicating tighter liquidity but still adequate for operational needs. Debtor levels are consistent, and stock levels decreased slightly, reflecting inventory management. No cash flow statement is provided, but the balance sheet suggests the company has maintained liquidity sufficient for current liabilities. Monitoring debtor collection periods and creditor terms will be important to ensure ongoing cash flow adequacy.

4. Monitoring Points:

• Continued growth in net assets and working capital to strengthen financial resilience.
• Debtor days and stock turnover metrics to assess cash conversion efficiency.
• Profitability trends once full profit & loss data is available, to confirm sustainable earnings.
• Timely filing of accounts and confirmation statements to ensure regulatory compliance.
• Impact of sector volatility and economic conditions on sales and receivables.
• Management's ability to maintain cost control as the company grows (employee numbers rose from 4 to 6).