Company Number: 15162513

Analysis Date: 2025-07-20 17:28 UTC

1. Risk Rating: LOW
   LRW Design Limited is a recently incorporated architectural practice that demonstrates a positive net current asset position, modest but positive net assets, and no overdue filings, indicating a low insolvency and regulatory risk at this early stage.

2. Key Concerns:

• High intercompany liabilities: The company owes £110,118 to Leach Rhodes Walkers Limited, which could represent a concentration risk if the parent or related entity faces financial difficulties.
• Limited trading history: Incorporated in September 2023 with first accounts to March 2024, the short operating history limits the ability to assess ongoing operational performance or stability.
• Small net asset base: Net assets of £15,736 are modest, reflecting the company's micro entity status and potentially limited financial buffer.

3. Positive Indicators:

• Positive net current assets (£15,736) suggest the company can meet short-term liabilities without immediate liquidity concerns.
• Up-to-date statutory filings with no overdue accounts or confirmation statements demonstrate good regulatory compliance.
• The company is wholly owned by LRW Design Group Limited, indicating group support and potential operational backing.
• The presence of multiple directors appointed recently may point to active governance and management oversight.
• The company operates in architectural activities, a professional services sector often characterized by recurring client projects and steady demand.

4. Due Diligence Notes:

• Review intercompany loan terms and repayment schedules related to the £110,118 owed to Leach Rhodes Walkers Limited to assess financial risk concentration and group dependency.
• Obtain management accounts or cash flow forecasts post-March 2024 to gauge ongoing liquidity and operational performance.
• Investigate the relationship and strategic rationale between LRW Design Limited and its parent LRW Design Group Limited, including any guarantees or shared liabilities.
• Confirm that no director disqualifications or governance issues exist for the current board members.
• Verify any contingent liabilities or off-balance sheet arrangements not disclosed in the filleted accounts.