L-ONMUSK LTD

Executive Summary

L-Onmusk Ltd is a young but financially stable micro-entity with strong net assets and liquidity, showing good financial management under sole directorship. The company’s balance sheet strength and adequate working capital support credit approval, subject to standard ongoing monitoring of cash flow and governance as it develops.

L-ONMUSK LTD - Analysis Report

Company Number: 14615540

Analysis Date: 2025-07-29 20:18 UTC

1. Credit Opinion: APPROVE
   L-Onmusk Ltd demonstrates strong financial health for its size and age, with solid net assets and positive working capital. The company has grown net assets substantially in its second year, indicating effective financial stewardship. The sole director, who is also the controlling shareholder, shows stability in management. Given the company’s micro status and recent incorporation, credit facilities can be approved with usual monitoring.

2. Financial Strength:
   The balance sheet shows total net assets of £75,170 as of 31 January 2025, up from £23,832 the previous year. Fixed assets are minimal (£583), typical for an IT consultancy, with most assets in current form (£102,684). Current liabilities are modest (£28,097), resulting in a healthy net current asset position of £74,587, which supports short-term obligations comfortably. The increase in net assets and working capital suggests positive retained earnings or capital injections.

3. Cash Flow Assessment:
   The company holds a strong liquidity position indicated by current assets significantly exceeding current liabilities. This implies good short-term cash flow management and sufficient working capital to cover immediate debts. The average number of employees is only one (the director), which keeps overheads low and cash outflows manageable. There are no signs of cash flow stress or reliance on overdrafts.

4. Monitoring Points:

• Monitor any changes in current liabilities and working capital to ensure liquidity remains strong as the business scales.
• Track turnover and profitability trends once more detailed P&L data is available to assess ongoing cash generation.
• Observe director and shareholder changes, particularly given sole control by one individual, which may affect governance.
• Review filings are kept timely as the company grows to avoid penalties and maintain transparency.