LRP BUILDING SERVICES LIMITED

Executive Summary

LRP Building Services Ltd currently faces significant liquidity and solvency challenges, reflected by negative net working capital and a sharp decline in net assets. Despite sound compliance and tangible asset holdings, the company's ability to meet short-term obligations appears strained. Detailed due diligence on financial obligations and operational performance is recommended to better understand the risks involved.

LRP BUILDING SERVICES LIMITED - Analysis Report

Company Number: 13317534

Analysis Date: 2025-07-29 19:50 UTC

1. Risk Rating: HIGH
   The company shows significant liquidity stress, with net current liabilities of £16,453 as of April 2024 and a substantial decline in net assets from £7,883 in 2023 to only £781 in 2024. The company's ability to meet short-term obligations is precarious, raising solvency concerns.

2. Key Concerns:

• Negative Net Current Assets: Current liabilities (£40,432) exceed current assets (£23,979), indicating potential cash flow problems.
• Declining Net Assets and Shareholders’ Funds: A sharp fall from £7,883 to £781 in net assets within one year signals erosion of equity and possible losses.
• Dependence on Director Financing and Dividend Payments: The director has received dividends (£22,000) and an outstanding loan (£3,121) remains unpaid, which could strain company finances if not managed carefully.

3. Positive Indicators:

• No Filing or Compliance Issues: Accounts and confirmation statements are up to date with no overdue filings, indicating regulatory compliance.
• Long-term Asset Base: The company holds tangible fixed assets (motor vehicles) valued at £19,500, which may provide some security or collateral.
• Sole Control by Director: Mr. Crawford-Lamb’s 75-100% ownership and active role may facilitate swift decision-making and oversight.

4. Due Diligence Notes:

• Verify the nature and terms of bank loans and overdrafts, particularly the reduction in long-term debt from £13,396 to £2,266.
• Investigate causes of the decline in net assets and whether losses are operational or due to one-off events.
• Assess the company’s cash flow forecasts and plans to address the current liabilities exceeding current assets.
• Clarify the status and terms of the director’s loan to the company and its impact on liquidity.
• Confirm whether there are any contingent liabilities or off-balance sheet obligations not disclosed.
• Review historical and projected revenue trends given the lack of turnover figures in the available data.

Executive Summary:
LRP Building Services Ltd exhibits a high risk profile mainly due to liquidity pressures and a steep decline in net assets over the last year. While regulatory compliance is maintained and the company holds tangible assets, the negative working capital and director-related financial transactions warrant close scrutiny. Further investigation into underlying operational performance and debt structure is essential to assess sustainability.