LUCKY RAF PROPERTIES LTD

Executive Summary

Lucky Raf Properties Ltd exhibits weak financial health characterized by negative net assets and substantial working capital deficits, indicating poor liquidity and limited ability to service debt. The company is small and newly established with minimal operational scale, raising concerns about its creditworthiness without further financial support or guarantees. Close monitoring of liquidity and equity trends is essential if credit exposure is contemplated.

LUCKY RAF PROPERTIES LTD - Analysis Report

Company Number: 13450152

Analysis Date: 2025-07-29 18:15 UTC

1. Credit Opinion: DECLINE
   Lucky Raf Properties Ltd shows a negative net asset position (£-1,103) and significant net current liabilities (£-39,547) as of the 2024 year-end, indicating poor liquidity and a weak balance sheet. The company is micro-sized, newly incorporated in 2021, and has no employees reported, suggesting limited operational scale. The financials reflect an inability to cover short-term liabilities with current assets, raising concerns about its capacity to service debt or meet commercial obligations reliably. No audit was performed, and the accounts are unaudited, which adds an element of risk regarding financial accuracy. Given these factors, extending credit without substantial additional security or evidence of imminent cash inflows is not advisable.

2. Financial Strength:
   The company reported fixed assets of £94,503 but current assets of only £5,433 against current liabilities of £55,699, resulting in a large working capital deficit. Total net liabilities of £1,103 further weaken the equity base. The balance sheet is strained with no positive net current assets to provide liquidity buffer. The absence of long-term borrowings simplifies the capital structure, but the negative equity and working capital deficit highlight financial vulnerability. The company’s financial trajectory from 2022 to 2024 shows some asset growth but worsening liquidity and equity position, indicating financial stress rather than improvement.

3. Cash Flow Assessment:
   Current assets are minimal and insufficient to cover short-term liabilities, demonstrating poor liquidity and potential cash flow challenges. The working capital deficiency of £39,547 implies the company may struggle to meet immediate financial obligations. No detailed cash flow statement is available, but the negative net current assets suggest operating cash flows are either negative or insufficient. Reliance on external funding or owner injections is likely for operational continuity. The absence of employees might reflect minimal operational expenses or early-stage development, but cash management risks remain significant.

4. Monitoring Points:

• Liquidity ratios: Current ratio and quick ratio to ensure improving short-term coverage.
• Net asset position and equity movements in subsequent filings to detect any capital infusions or deterioration.
• Timely filing of accounts and confirmation statements to maintain compliance and transparency.
• Operational scale and revenue generation evidence to gauge cash flow improvements.
• Director conduct and any changes in ownership or control that might affect credit risk.