LTW INVESTMENTS LTD

Executive Summary

LTW Investments Ltd is a newly incorporated micro-entity with significant liquidity and solvency challenges evident in its first financial period. The company’s negative working capital and shareholders’ funds raise concerns about its ability to meet short-term obligations and sustain operations. While compliance and asset holdings are positive factors, further investigation into asset liquidity and funding plans is essential for a comprehensive risk assessment.

LTW INVESTMENTS LTD - Analysis Report

Company Number: 15268122

Analysis Date: 2025-07-29 16:30 UTC

1. Risk Rating: HIGH
   The company exhibits significant liquidity and solvency concerns, with net current liabilities of £373,996 and negative shareholders' funds of £4,862 within its first financial period. This indicates that current liabilities significantly exceed current assets, implying potential difficulty in meeting short-term obligations.

2. Key Concerns:

• Negative Working Capital: The company has current liabilities (£383,484) far exceeding current assets (£9,488), resulting in a substantial working capital deficit that signals liquidity risk.
• Negative Shareholders’ Funds: The total equity is negative (£4,862), suggesting the company is technically insolvent on a net asset basis at this early stage.
• Lack of Operational History and Employees: Incorporated in November 2023, with no employees and no reported turnover (micro entity), there is limited evidence of operational activity or cash flow generation to sustain the business.

3. Positive Indicators:

• Fixed Assets Base: The company holds fixed assets valued at £369,134, which may provide some collateral or longer-term value.
• Compliance with Filing: The company is current on its statutory filings, including accounts and confirmation statements, demonstrating regulatory compliance and governance discipline.
• Clear Ownership and Management: Two directors and PSCs with defined ownership and control provide transparency in governance.

4. Due Diligence Notes:

• Verify the nature and liquidity of fixed assets to assess their potential to cover liabilities or be monetized.
• Investigate the source and terms of the substantial current liabilities to understand their origin and repayment schedule.
• Review business plans or forecasts to evaluate how the company intends to generate cash flow and return to a solvent position.
• Confirm whether the company has access to additional funding sources or guarantees from shareholders.
• Assess any contingent liabilities or related party transactions that may impact financial stability.