LS DESIGN AND INSTALLATIONS LTD

Executive Summary

LS Design and Installations Ltd shows a positive financial turnaround with improved liquidity and a strengthening balance sheet. The company is well positioned to meet small-scale credit obligations, supported by stable management and current compliance. Ongoing monitoring should focus on working capital management and operational cash flow to mitigate risk.

LS DESIGN AND INSTALLATIONS LTD - Analysis Report

Company Number: 13007075

Analysis Date: 2025-07-20 12:03 UTC

1. Credit Opinion: APPROVE
   LS Design and Installations Ltd demonstrates sound financial improvement and prudent management for its size. The company has moved from a net current liability position in 2021 to a strong net current asset position in 2022, indicating better liquidity and working capital management. No overdue filings and a stable director profile further support creditworthiness. Given its micro-entity status and modest asset base, it is suitable for small-scale credit facilities with standard monitoring.

2. Financial Strength:
   The balance sheet shows a positive trajectory with net assets increasing from £7,232 in 2021 to £12,552 in 2022. Fixed assets remain stable at around £8,000–£9,000, indicative of modest investment in long-term resources. The dramatic turnaround in net current assets from negative £622 to positive £5,812 reflects improved short-term financial health. Shareholders’ funds increased correspondingly, supporting stronger equity backing.

3. Cash Flow Assessment:
   Current assets rose from £3,583 to £5,842, while current liabilities dramatically decreased from £4,205 to £30, boosting liquidity. This substantial improvement in working capital implies that the company now has sufficient short-term resources to meet immediate obligations comfortably. Operating with just one employee, cash outflows are likely controlled, reducing operational risk. Overall liquidity appears adequate for ongoing operations and modest credit exposure.

4. Monitoring Points:

• Maintain close watch on working capital trends to ensure continued liquidity improvement.
• Monitor debtor and creditor days to confirm timely collections and payments.
• Track any changes in fixed asset investments and capital expenditure relative to turnover growth.
• Monitor director stability and any changes in ownership or control which could impact governance.
• Watch for the company’s ability to file accounts and confirmation statements on time to avoid regulatory penalties.