LUMBERG CONSTRUCTION CONSULTANCY LIMITED

Executive Summary

Lumberg Construction Consultancy Limited displays a solid financial footing with growing net assets, strong liquidity, and manageable liabilities. The company’s cash-rich position and consistent working capital provide confidence in its ability to meet debt obligations. Continued monitoring of debtor balances and director loans is recommended to sustain creditworthiness.

LUMBERG CONSTRUCTION CONSULTANCY LIMITED - Analysis Report

Company Number: 12920756

Analysis Date: 2025-07-20 14:01 UTC

1. Credit Opinion: APPROVE
   Lumberg Construction Consultancy Limited demonstrates a stable and improving financial position with no overdue filings or indications of distress. The company has maintained positive net current assets and net assets consistently since incorporation in 2020, reflecting sound financial stewardship by the sole director. The absence of debt beyond director loans and manageable current liabilities supports the company’s ability to service credit facilities. Given its business activities in construction consultancy and project development, which tend to be less capital intensive, the company shows appropriate liquidity and balance sheet strength for its size.

2. Financial Strength:
   The company’s balance sheet shows a steady growth in net assets from £53,531 in 2020 to £84,550 in 2023. Fixed tangible assets are minimal (£557 in 2023), consistent with a consultancy business model. Current assets have risen to £95,045 as of September 2023, primarily due to increased cash balances (£80,004). Current liabilities remain low at £11,052, including VAT, taxes, and minor director loans (£1,241), resulting in strong net current assets of £83,993. Shareholders’ funds equal net assets, indicating no external equity financing but retained earnings growth. The company remains within the 'Micro' category, limiting credit exposure.

3. Cash Flow Assessment:
   The company holds a robust cash position relative to its liabilities, with cash representing approximately 86% of current assets in 2023. Debtors increased to £15,041 from a negligible amount previously but remain collectible within a year since all are current assets. Current liabilities are modest and manageable, including VAT and tax obligations, with no bank borrowings reported. Positive net current assets demonstrate good working capital management and liquidity to cover short-term obligations without reliance on external credit.

4. Monitoring Points:

• Track debtor collection periods, as the rise to £15,041 in trade debtors requires monitoring to ensure timely payment.
• Monitor director loans, although currently low, to ensure they do not increase to levels that could impair liquidity.
• Continued monitoring of cash flow and VAT/tax liabilities to avoid any payment delays.
• Watch for any significant changes in business activity or economic conditions affecting construction consultancy demand.
• Ensure timely filing of accounts and confirmation statements to maintain compliance and transparency.