LOMOND GEOTECHNICAL LTD

Executive Summary

Lomond Geotechnical Ltd presents a stable financial profile with positive net assets and strong liquidity, indicating good ability to meet short-term obligations. The absence of debt and timely filings reduce credit risk, supporting an approval decision. Continued monitoring of tax liabilities and cash flow will ensure sustained creditworthiness.

LOMOND GEOTECHNICAL LTD - Analysis Report

Company Number: SC691931

Analysis Date: 2025-07-19 12:57 UTC

1. Credit Opinion: APPROVE Lomond Geotechnical Ltd demonstrates a stable and sound financial position with consistent net assets and positive working capital over the past three years. The company has no overdue filings and maintains adequate liquidity to meet short-term obligations. Given the absence of external debt and a modest but positive equity base, the risk profile is low, supporting credit approval.

2. Financial Strength: The company’s balance sheet shows a net asset value of £46,289 as of August 2024, slightly down from £47,069 the previous year but stable overall. Fixed assets are modest (£14,315), primarily motor vehicles, reflecting limited capital intensity typical of engineering service firms. Shareholders’ funds comprise mostly retained earnings, indicating profitability or capital injection since incorporation. There are no long-term liabilities reported, and current liabilities are limited to corporation tax payable (£7,314), which is manageable given the cash position.

3. Cash Flow Assessment: Cash on hand increased to £39,288 in 2024 from £35,043 in 2023, suggesting positive cash flow management. Net current assets stand at £31,974, indicating strong working capital and liquidity. The company’s ability to cover current liabilities nearly fivefold with current assets shows a robust short-term liquidity profile. No external borrowings are noted, so the company is not reliant on external finance, lowering credit risk.

4. Monitoring Points:

• Corporation tax creditor is the only current liability; monitor timely payment to avoid tax-related risks.
• Review cash flow trends annually to ensure the company maintains liquidity as it grows.
• Monitor turnover and profitability trends as these are not disclosed here but critical for ongoing creditworthiness.
• Keep track of any increase in liabilities or leverage that could affect the financial stability.
• Confirm that the director’s management experience continues to support prudent financial governance.