Company Number: 14837991

Analysis Date: 2025-07-29 16:06 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Lyons & Roberts Laundry Ltd is a newly incorporated private limited company (May 2023) operating in textile washing and dry-cleaning services. Given its infancy and the financials available for the first accounting period ending May 2024, the company shows a modest net asset position (£2,263) but a significant net current liability of £18,273. The negative working capital position indicates potential liquidity constraints in meeting short-term obligations. However, there is no overdue filing, and directors have acknowledged going concern status. Credit approval is recommended on a conditional basis with limits aligned to current asset coverage and regular monitoring of cash flow and debtor collections.

2. Financial Strength:
   The company’s balance sheet reflects fixed tangible assets of £20,536, primarily plant and machinery, net of depreciation. Current assets total £20,549, mostly debtors (£17,625) with a low cash balance (£2,924). Current liabilities stand at £38,822, resulting in net current liabilities of £18,273. Shareholders funds equal net assets at £2,263, indicating minimal equity buffer. The early stage of the company and limited equity base present moderate financial risk, with dependence on efficient working capital management to maintain solvency.

3. Cash Flow Assessment:
   Cash at bank is low relative to current liabilities, and a large portion of current assets is tied up in trade debtors. The company must maintain strong debtor collections and control payables to avoid liquidity shortfalls. The negative net working capital implies potential cash flow strain, especially if debtor turnover slows or creditor demands accelerate. The directors’ professions (Manager and Accounts Manager) suggest operational and financial oversight, but cash flow projections and debtor aging reports should be reviewed before extending significant credit.

4. Monitoring Points:

• Debtor collection periods and aging to ensure timely cash inflows
• Changes in net current assets and liquidity ratios over subsequent periods
• Profitability trends as turnover scales and fixed asset depreciation stabilizes
• Director advances and repayments for any potential related party risks
• Compliance with filing deadlines and any changes in company or director status