LUCASP TRANSPORT LTD

Executive Summary

Lucasp Transport Ltd is currently in a financially distressed position, with persistent negative net assets and working capital deficits indicating weak ability to meet debt obligations. The company's liquidity is constrained, and there is no indication of operational profitability or significant asset backing. Given these factors, credit extension is not recommended without substantial financial restructuring or external support.

LUCASP TRANSPORT LTD - Analysis Report

Company Number: 13695564

Analysis Date: 2025-07-29 18:18 UTC

1. Credit Opinion: DECLINE
   Lucasp Transport Ltd exhibits weak financial health with persistent negative net current assets and shareholders' funds, indicating an ongoing inability to meet short-term liabilities from current assets. The company is loss-making or has accumulated losses since inception, reflected by negative equity of approximately £1,290 at the latest year-end. Liquidity is constrained, and there is no evidence of profitability or significant asset base to support borrowing. Given the company's limited scale, negative working capital, and absence of fixed assets, the risk of default on credit facilities is high. Without substantial improvement in financial position or external support, extending credit would be imprudent.

2. Financial Strength:
   The balance sheet shows net liabilities of £1,290 as of 31 October 2024, a slight improvement from £1,411 the prior year but still negative. Current assets total only £1,247, mainly cash (£1,147) and minimal trade debtors (£100), whereas current liabilities stand at £2,537, dominated by taxes and social security liabilities. The company has no fixed assets or other long-term resources. Shareholders’ funds are negative (£-1,290), indicating accumulated losses with no retained earnings to buffer downturns. The single director is the sole significant shareholder controlling 75-100% of voting rights, suggesting limited external governance.

3. Cash Flow Assessment:
   Cash holdings are minimal at £1,147, insufficient to cover current liabilities of £2,537. Negative net current assets of £-1,290 demonstrate a working capital deficit, implying reliance on external funding or director support to meet obligations. No evidence of cash inflows from operations is provided, and with only one employee and minimal assets, operational cash generation capacity appears limited. High tax and social security creditors suggest potential payment delays or cash flow stress. Overall liquidity is weak, increasing the risk of payment default.

4. Monitoring Points:

• Trends in net current assets and liquidity position, specifically cash balances relative to short-term liabilities.
• Changes in tax and social security creditor balances to detect payment delays or arrears.
• Profit and loss account movements for any trends towards profitability or further losses.
• Director’s financial support or capital injections that may affect solvency.
• Operational developments impacting cash flow, such as new contracts or changes in operating expenses.
• Timeliness of statutory filings and compliance to gauge management quality and governance.