LWJ ROPE TECH LTD

Executive Summary

LWJ ROPE TECH LTD is a very young, micro-entity with limited financial resources and reliance on director funding, which presents moderate solvency and liquidity risks. The company maintains compliance with filing obligations and shows positive net current assets, but its operational scale and financial cushion are minimal. Further due diligence on cash flow sustainability and business operations is recommended to better understand the company’s risk profile.

LWJ ROPE TECH LTD - Analysis Report

Company Number: 14294136

Analysis Date: 2025-07-20 12:59 UTC

1. Risk Rating: MEDIUM
   The company is newly incorporated (2022) with minimal financial data and limited asset base. While it has positive net current assets, the small scale and reliance on director advances represent moderate solvency and liquidity risks.

2. Key Concerns:

• Extremely low current assets (£380) and net current assets (£162) indicate a fragile liquidity position with little buffer against unexpected expenses or liabilities.
• Director’s loan account of £192 outstanding during the period, although repaid shortly after the year-end, reflects dependence on director funding which may not be sustainable long term.
• Company operates with only one employee and is classified as a micro-entity, raising questions about operational scale and capacity for sustainable business growth.

3. Positive Indicators:

• The company is current on all statutory filings with no overdue accounts or confirmation statements, suggesting good governance and compliance.
• Positive net current assets and shareholders’ funds, albeit small, demonstrate the company is not trading insolvent at the reporting date.
• No indication of director disqualifications or regulatory compliance issues in the available data.

4. Due Diligence Notes:

• Verify cash flow statements or management accounts to assess ongoing liquidity beyond the snapshot balance sheet figures.
• Investigate nature of director’s advances and repayment terms to understand financial support structure and risks.
• Review business model, contracts, and pipeline to evaluate operational sustainability given the micro-entity scale and single employee.
• Confirm no contingent liabilities or related party transactions that could impact financial stability.