LRW DESIGN LIMITED

Executive Summary

LRW Design Limited is a micro architectural company with a stable financial position reflected by positive net current assets and no overdue statutory filings. While the small net asset base and intercompany loan exposure warrant monitoring, the company benefits from group affiliation and appears compliant with regulatory requirements. Further review of intercompany arrangements and recent operational data is recommended to fully assess ongoing financial stability.

LRW DESIGN LIMITED - Analysis Report

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.