LUCORE LIMITED

Executive Summary

Lucore Limited exhibits substantial liquidity and solvency challenges, with negative net current assets and shareholders' funds indicating financial distress. While the company maintains compliance with filing requirements and holds tangible fixed assets, its operational scale and governance concentration raise concerns. Further due diligence on cash flow, management stability, and business viability is recommended before considering investment.

LUCORE LIMITED - Analysis Report

Company Number: 13887700

Analysis Date: 2025-07-20 17:07 UTC

1. Risk Rating: HIGH
   The company demonstrates significant solvency and liquidity concerns, with net current liabilities exceeding current assets by a wide margin and negative net assets. Operational sustainability appears questionable given the small employee base and mounting creditor balances.

2. Key Concerns:

• Severe Liquidity Deficit: As at 31 December 2023, current liabilities (£382,851) substantially exceed current assets (-£150), resulting in a negative net current asset position of -£383,001. This gap has widened compared to prior years, indicating deteriorating short-term financial health.
• Negative Net Assets: Shareholders’ funds have turned negative at -£115,664, reflecting accumulated losses and an erosion of equity capital that may impair the company’s ability to secure financing or trade credit.
• Concentration of Control and Recent Director Turnover: A single corporate PSC controls 75-100% of shares and voting rights, which may limit governance diversity. Additionally, there have been multiple director changes within a short period, potentially indicating management instability.

3. Positive Indicators:

• No Overdue Filings: Both accounts and confirmation statements are filed on time, suggesting regulatory compliance is currently maintained.
• Significant Tangible Fixed Assets: The company holds tangible fixed assets valued at £267,337, which may provide some collateral value or operational capacity.
• Low Employee Count: With only one employee reported, overhead costs may be limited, which could support operational flexibility.

4. Due Diligence Notes:

• Examine Cash Flow and Working Capital Trends: Investigate the timing and nature of creditor balances, cash flow forecasts, and whether the company is meeting short-term obligations to assess immediate solvency risk.
• Review Directors’ Backgrounds and Changes: Understand reasons behind recent director resignations and appointments, along with the involvement and influence of the controlling shareholder entity.
• Assess Underlying Business Model and Revenue Generation: Given the SIC code (82990 - other business support services not elsewhere classified) and limited operational scale, determine revenue streams, client concentration, and sustainability of business activities.
• Verify Fixed Assets Valuation and Utilization: Confirm the nature, condition, and market value of fixed assets relative to their book value to assess potential for asset-based lending or liquidation value.
• Consider Impact of Prior Year Adjustments: Review notes on prior year fixed asset additions omitted previously to understand their effect on financial reporting and asset base.