LUJAROGAMES LTD

Executive Summary

LUJAROGAMES LTD is a micro-sized retailer of games and toys exhibiting significant financial distress with worsening net liabilities and severe working capital shortages. The company’s current financial profile indicates an inability to meet short-term obligations, making credit extension high risk. Close monitoring and substantial financial restructuring would be necessary before reconsidering credit facilities.

LUJAROGAMES LTD - Analysis Report

Company Number: 14024652

Analysis Date: 2025-07-29 19:38 UTC

Credit Opinion:
DECLINE. LUJAROGAMES LTD demonstrates a significantly deteriorating financial position with escalating net current liabilities and negative net assets. The micro-sized company’s working capital deficit increased markedly from -£4,544 (2023) to -£84,710 (2024), indicating severe liquidity constraints. This raises serious concerns about the company’s ability to meet short-term obligations and service any credit facility reliably. There is no indication of profitability or positive cash flow generation to support debt repayment. The lack of employees suggests limited operational scale and potential dependency on directors. Given these factors, extending credit without substantial improvements or guarantees is not advisable.

Financial Strength:
The balance sheet as at 30 April 2024 shows net liabilities of £84,710, worsening sharply from £4,544 net liabilities the previous year. Current liabilities have surged from £10,719 to £93,458 while current assets only marginally increased from £6,175 to £8,748. This results in a very weak equity base and negative shareholders’ funds, implying erosion of capital and potential insolvency risk. The company’s capital structure is minimal with only £2 share capital, indicating limited buffer to absorb losses. The financial health is poor with no fixed assets reported, which limits collateral availability.

Cash Flow Assessment:
The company’s net current liabilities indicate a severe working capital deficiency. Current assets, mainly cash or receivables, are insufficient to cover short-term liabilities by a wide margin. This suggests potential cash flow crises and difficulty in meeting creditor demands promptly. The absence of employees implies no payroll burden, but also limited operational capacity to generate cash. Without external funding or additional capital injections, the company’s liquidity position appears unsustainable.

Monitoring Points:

• Monitor quarterly management accounts for changes in working capital and cash flows.
• Track creditor days and overdue payables to assess payment discipline and liquidity pressure.
• Review director financial support or any capital injections to shore up net assets.
• Watch for any changes in business activity or expansion plans that might impact cash flow.
• Keep an eye on filings compliance to ensure timely financial data availability.