LUMERIA LTD

Executive Summary

Lumeria Ltd is a small, recently established IT consultancy with a currently stable but slightly weakening financial position. The company maintains positive working capital and liquidity but has seen a reduction in net assets and cash reserves year on year. Credit approval is recommended with conservative limits and active monitoring of cash flow and liabilities to manage emerging financial pressures.

LUMERIA LTD - Analysis Report

Company Number: 14567349

Analysis Date: 2025-07-20 12:53 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Lumeria Ltd is a recently incorporated private limited company (since January 2023) operating in IT consultancy (SIC 62020). The company shows positive net current assets and shareholders' funds, indicating a modestly healthy balance sheet for its size. However, the latest year (to 31 January 2025) reveals a reduction in net current assets and net assets compared to the prior year, signaling a slight weakening in financial position. Cash reserves have also decreased notably, though remain adequate relative to short-term liabilities. Given the company’s young age, small scale, and the directors’ dual control (75-100% ownership by Mrs. Dona Shine, 25-50% by Mr. Donnchadh Shine), credit exposure should be limited and closely monitored. Approval is recommended on a conditional basis with limits aligned to current working capital levels and subject to review of ongoing cash flow performance.

2. Financial Strength:

• Share Capital is minimal at £100, typical for a small private company.
• Net Assets decreased from £36,834 (2024) to £25,760 (2025), reflecting a decline in retained earnings (profit and loss reserve).
• Current Assets reduced from £76,861 to £66,943, driven mainly by a drop in cash from £62,241 to £49,475 and marginally higher debtors.
• Current Liabilities increased slightly to £41,183 from £40,027, with notable VAT and tax accruals.
• Net Current Assets remain positive at £25,760, indicating the company can cover short-term liabilities but with reduced margin compared to prior year.
  The balance sheet is stable but shows early signs of financial pressure, possibly due to increased tax liabilities or lower profitability.

3. Cash Flow Assessment:

• Cash on hand of £49,475 compared to current liabilities of £41,183 provides a short-term liquidity buffer.
• Debtors increased modestly to £17,468, indicating some credit risk in receivables but manageable given the scale.
• Loans from directors are minimal (£289), suggesting limited external debt burden.
• The company employs 2 people, keeping fixed overheads low.
• Reduced cash balances from previous year warrant careful monitoring of cash generation and working capital management to ensure ongoing ability to meet obligations.

4. Monitoring Points:

• Watch the trend in net current assets and cash balances closely, as any further decline could impair liquidity.
• Monitor VAT and tax liabilities to ensure timely payment and avoid penalties or enforcement actions.
• Keep track of receivables aging to mitigate credit risk exposure.
• Review profitability and cash flow forecasts regularly, particularly as the company grows beyond micro/small thresholds.
• Assess director conduct and any changes in ownership/control for potential impact on governance and financial strategy.