LUKE CHARLES CONSULTANCY LIMITED

Executive Summary

Luke Charles Consultancy Limited is a newly established private company with negative net assets and net current liabilities indicating weak financial health and limited liquidity. The company’s ability to service debt or meet commercial commitments is currently questionable, warranting a decline of credit facilities. Close monitoring of cash flow improvements and capital structure is essential before reconsidering credit exposure.

LUKE CHARLES CONSULTANCY LIMITED - Analysis Report

Company Number: 15222371

Analysis Date: 2025-07-29 19:13 UTC

1. Credit Opinion: DECLINE
   Luke Charles Consultancy Limited demonstrates a weak financial position with net liabilities of £17,198 and negative working capital, indicating an inability to meet short-term obligations from current assets. The company is newly incorporated (Oct 2023) and has operated less than a full year, limiting historical financial data to assess creditworthiness. The negative equity and current liabilities exceeding cash resources raise concerns over its capacity to service debt or honor commercial commitments without external support. Given these factors, extending credit would carry high risk at this stage.

2. Financial Strength:
   The balance sheet reveals net current liabilities of £17,385 and net assets of negative £17,198. Fixed assets are minimal (£250), and cash reserves stand at £16,768, which is insufficient to cover current liabilities of £34,153. The equity base is essentially eroded from accumulated losses or initial operating deficits. This financial structure reflects weak capitalization and limited buffer to absorb adverse financial shocks.

3. Cash Flow Assessment:
   Liquidity is constrained, with cash covering only about 49% of current liabilities. The absence of significant current assets such as receivables or inventory suggests limited working capital flexibility. Negative net current assets indicate potential cash flow strains, which could impact timely payment of creditors and operational expenses. Without evidence of external funding or committed cash inflows, liquidity risk is elevated.

4. Monitoring Points:

• Cash flow trends and ability to generate positive operating cash flows
• Changes in working capital and current liabilities profile
• Any capital injections or external financing to improve liquidity
• Timely filing of next accounts and confirmation statements to monitor ongoing compliance
• Business growth indicators including turnover and profitability once available