LUKE BANGS LTD

Executive Summary

Luke Bangs Ltd, incorporated in late 2023, is currently exhibiting high financial risk with substantial net liabilities and negative working capital. While it maintains good compliance with filing requirements and has a defined governance structure, the liquidity and solvency concerns warrant close scrutiny. Further due diligence on debt obligations and operational viability is essential before considering investment.

LUKE BANGS LTD - Analysis Report

Company Number: 15182036

Analysis Date: 2025-07-29 12:34 UTC

1. Risk Rating: HIGH
   The company shows significant net liabilities and a negative working capital position shortly after incorporation, indicating elevated solvency and liquidity risks.

2. Key Concerns:

• Severe Negative Net Current Assets: Current liabilities (£50,703) vastly exceed current assets (£4,891), resulting in a net current liability of £45,812, signaling immediate liquidity pressure.
• Negative Shareholders’ Funds: Total net assets stand at -£44,613, implying the company is insolvent on a balance sheet basis. This raises concerns about the ability to meet long-term obligations.
• High Reliance on Short-Term Creditors: A substantial portion of liabilities includes bank loans and overdrafts (£18,214) and other creditors (£30,027), suggesting significant short-term debt burden that may strain cash flow.

3. Positive Indicators:

• No Overdue Filings: The company has filed accounts and confirmation statements on time, demonstrating regulatory compliance and good governance in statutory obligations.
• Active Status with Directors in Place: The company is active with two directors holding significant control, indicating clear governance structure.
• Modest Tangible Fixed Assets: Ownership of computer equipment valued at £1,199 provides some fixed asset base, albeit limited.

4. Due Diligence Notes:

• Investigate the nature and terms of the £18,214 bank loans and overdrafts to assess repayment schedules and covenants.
• Review cash flow statements and management forecasts to evaluate liquidity management and potential funding sources.
• Clarify reasons behind the large creditor balances and if any are overdue or subject to dispute.
• Assess the company’s business plan and revenue generation prospects given the industry (used car sales) and the negative equity position.
• Confirm no director disqualifications or adverse regulatory issues affecting management capability.