LUCASMATEI LIMITED

Executive Summary

LUCASMATEI LIMITED is experiencing financial stress evidenced by negative working capital and net liabilities over multiple years, signaling liquidity and solvency concerns. The company requires urgent cash flow management and capital infusion to stabilize its financial condition and improve operational resilience. Without intervention, the risk of insolvency remains elevated despite current active status.

LUCASMATEI LIMITED - Analysis Report

Company Number: 13106472

Analysis Date: 2025-07-19 12:43 UTC

Financial Health Assessment of LUCASMATEI LIMITED

---

1. Financial Health Score: D

Explanation:
LUCASMATEI LIMITED shows persistent negative net current assets and net liabilities over the last three reported years (2021-2023), indicating ongoing financial strain. The company is currently operating with a working capital deficit, which is a significant symptom of liquidity distress. Although it remains active and not in formal insolvency, this financial posture suggests vulnerability and limited financial resilience.

---

2. Key Vital Signs

Metric	2023 (£)	2022 (£)	2021 (£)	Interpretation
Current Assets	923	447	447	Low but increasing cash and receivables
Current Liabilities	1,544	1,167	1,167	Growing short-term debts and payables
Net Current Assets (Working Capital)	-621	-720	-720	Negative – indicates inability to cover short-term debts with current assets
Net Assets (Equity)	-621	-720	-720	Negative shareholder funds – company is insolvent on a balance sheet basis
Share Capital	1	1	1	Minimal capital base, typical for micro entity
Number of Employees	1	-	-	Very small operation, likely owner-managed

Interpretation of Vital Signs:

• Negative Working Capital: The company’s current liabilities exceed its current assets, indicating it may struggle to meet short-term obligations without additional financing or cash inflows. This is a key symptom of liquidity distress.
• Negative Net Assets: The company’s liabilities exceed its total assets, signaling that it is technically insolvent on a balance sheet basis. This raises concerns about the company’s solvency and long-term viability.
• Minimal Capital and Workforce: With only one employee and minimal share capital, the company operates on a very lean basis, which limits its buffer to absorb financial shocks.

---

3. Diagnosis

LUCASMATEI LIMITED’s financial health exhibits chronic symptoms of distress primarily due to ongoing negative net current assets and net liabilities. The company operates in the freight transport by road sector, which often requires stable cash flow to manage operational expenses such as fuel, maintenance, and wages. The persistent working capital deficit suggests cash flow challenges that could impede daily operations if not addressed.

The negative equity position is a red flag indicating that accumulated losses or liabilities have eroded the company’s net worth. While the business remains active and not in formal insolvency proceedings, the financial “vital signs” point to a fragile state where any unexpected costs or downturns could tip it into more severe financial difficulty.

The company’s small scale and single-employee structure imply limited operational complexity but also limited capacity to generate significant revenue or absorb losses.

---

4. Recommendations

• Immediate Cash Flow Management: Implement stringent cash flow monitoring and forecasting to ensure that incoming cash can cover immediate liabilities. Seek to accelerate receivables and manage payables carefully to improve liquidity.
• Capital Infusion: Consider injecting additional equity or securing short-term financing to restore positive working capital and improve the balance sheet position. This will enhance creditor confidence and operational stability.
• Cost Control and Efficiency: Review operational costs to identify savings, especially in discretionary expenses. Streamlining freight routes or negotiating better terms with suppliers and customers may improve margins.
• Revenue Growth Initiatives: Explore opportunities to increase sales or diversify services within the freight sector to boost turnover. Even small increases can help alleviate liquidity pressures.
• Regular Financial Health Monitoring: Establish a routine financial health check-up, tracking key metrics monthly to detect early warning signs and enable proactive management.
• Professional Advice: Engage with financial advisors or insolvency practitioners early if cash flow issues persist, to explore restructuring options and avoid potential formal insolvency procedures.

---

Medical Analogy Summary

LUCASMATEI LIMITED’s financial condition is akin to a patient with a “weak heart” — the company’s cash flow (circulatory system) struggles to meet the demands of its liabilities (body’s needs), leading to “oxygen deprivation” (liquidity shortage). The balance sheet shows signs of “organ strain” (negative equity), warning of potential failure without intervention. Immediate “treatment” through cash flow management and capital support is crucial to restore financial vitality and prevent deterioration into insolvency.

---