LONDON COMBINED SERVICES LIMITED

Executive Summary

London Combined Services Limited has shown financial improvement in its latest reported year with positive net assets and current assets exceeding current liabilities, suggesting an ability to meet short-term obligations. However, early financial instability and limited disclosure as a micro-entity warrant caution and further investigation into cash flows and creditor terms. The company maintains good regulatory compliance and has a stable management structure, moderating the overall risk profile to medium.

LONDON COMBINED SERVICES LIMITED - Analysis Report

Company Number: 13192342

Analysis Date: 2025-07-29 20:16 UTC

1. Risk Rating: MEDIUM

Justification: London Combined Services Limited demonstrates a modest positive net asset position and net current assets as of its latest accounts, indicating an ability to meet short-term liabilities. However, the company has a history of negative net current assets and negative equity in its initial year, which raises some concerns about early financial instability. The company is a micro-entity with limited financial disclosures, which constrains the depth of analysis. Overall, there is moderate risk related to liquidity and operational sustainability due to limited scale and historical volatility in working capital.

2. Key Concerns:

• Historical liquidity challenges evidenced by significant negative net current assets and net liabilities in the first financial year (2021), suggesting prior cash flow pressures.
• Persistent creditor obligations falling due after more than one year (£10,000) that require monitoring for timely servicing given the company’s small size and limited capital.
• Limited financial disclosure as a micro-entity restricts visibility into profitability, cash flow dynamics, and off-balance sheet risks, increasing due diligence requirements.

3. Positive Indicators:

• The latest financial year (2024) shows a reversal to positive net current assets (£5,668) and positive net assets (£22,753), indicating improved short-term liquidity and equity position.
• Consistent employment level (2 persons including director) reflects stable operational scale.
• Company filings, including accounts and confirmation statements, are up to date with no overdue filings or regulatory compliance issues noted.
• Ownership and control appear stable with no director disqualifications or governance red flags.

4. Due Diligence Notes:

• Verify the nature and terms of the £10,000 long-term creditor to assess repayment risk and impact on future cash flows.
• Investigate cash flow statements or bank records (if available) to ascertain current liquidity beyond balance sheet snapshots.
• Review the company’s contract pipeline, client base, and revenue sustainability given its classification in specialised construction activities.
• Confirm the reason for the initial negative equity and whether it relates to start-up losses or unusual transactions.
• Assess any related-party transactions or director loans that may not be fully visible in micro-entity filings.