LV INVESTMENTS (LONDON) LTD

Executive Summary

LV INVESTMENTS (LONDON) LTD is a start-up real estate company with a negative equity position and significant liabilities, relying heavily on director loans and bank financing. Its current liquidity position is weak, with insufficient cash relative to liabilities, and no operational staff reported. Conditional credit approval is recommended, contingent on demonstrated improvement in cash flow and financial stability within the coming year.

LV INVESTMENTS (LONDON) LTD - Analysis Report

Company Number: 14573340

Analysis Date: 2025-07-29 17:52 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   LV INVESTMENTS (LONDON) LTD is a newly incorporated company (2023) operating in the real estate letting sector. The company’s financials show negative net assets (£-11,902) and a working capital deficit (£-139,162), largely due to significant liabilities including a director’s loan and bank loans. While the goodwill asset of £456k provides some intangible value, the company is currently relying heavily on external funding and has no employees generating operational cash flow. The ability to service current and long-term debt is uncertain at this stage. Approval is conditional on the company demonstrating improved liquidity and positive cash flow generation within the next 12 months, along with regular monitoring of debt servicing capacity.

2. Financial Strength: Weak
   The balance sheet shows total assets less current liabilities of £317,192, primarily consisting of goodwill (£456,354). However, the company has current liabilities of £160,413 and long-term liabilities of £329,094 (bank loans), leading to net liabilities and negative shareholders’ funds. The reliance on a director’s loan (£159,213) also suggests dependency on insider funding. The absence of tangible fixed assets and the presence of goodwill as the main asset expose the company to impairment risk. Overall, the financial structure lacks solidity and equity buffer, which raises concerns about resilience to adverse market conditions.

3. Cash Flow Assessment: Insufficient Liquidity
   Cash on hand is low at £21,251 against significant current liabilities, resulting in a net current liability position of £139,162. No employees are reported, indicating limited operational activity or revenue generation at this stage. The director’s loan and bank loans represent substantial obligations that will require cash flow to service. The company’s cash flow position is fragile, and without immediate improvement in operational cash inflows or further capital injections, liquidity risk is elevated.

4. Monitoring Points:

• Monitor quarterly cash flow statements to assess improvement in liquidity and ability to meet short-term obligations.
• Track progress on operational activity and revenue generation to reduce reliance on director loans and external borrowing.
• Watch for any impairment indicators on goodwill, which constitutes the majority of assets.
• Review updates on debt servicing performance, particularly bank loan repayments and director loan arrangements.
• Ensure timely filing of accounts and confirmation statements to maintain compliance and transparency.