Company Number: OC438098

Analysis Date: 2025-07-29 16:28 UTC

1. Credit Opinion: APPROVE with conditions.
   Lyra Halling LLP shows a stable financial position with a moderate asset base primarily in investment property. The company is servicing its bank loans with no overdue filings or apparent financial distress. However, the loan size relative to net assets and limited liquidity suggests the need for ongoing monitoring, particularly given the property market risks and modest cash balances.

2. Financial Strength:
   The LLP holds investment property valued at £267k with a slight decrease from prior year (£285k), indicating minor disposal activity. Total assets less current liabilities stand at £282.9k with net assets of £136.3k, supported by members' capital of £161k. Long-term bank loans total £146.6k, secured against the property, resulting in a moderate leverage ratio. Net current assets are positive at £15.6k, improving from a prior year deficit. The balance sheet reflects a modest equity buffer but some reliance on secured debt.

3. Cash Flow Assessment:
   Cash at bank is very low (£153), though debtors of £32k provide some short-term liquidity. Current liabilities of £16.5k include bank loans and other creditors, manageable against current assets. The working capital position has improved significantly, supporting short-term obligations. The company’s ability to generate sufficient operating cash flow is not disclosed, but the absence of employees suggests limited operational overhead. Monitoring cash flow coverage of interest and principal repayments is advisable.

4. Monitoring Points:

• Watch for any fluctuations in investment property valuations or disposals that could impact asset security.
• Monitor cash and debtor collections closely to ensure liquidity remains sufficient.
• Keep track of loan covenant compliance and refinancing risks given the long-term secured debt.
• Review any changes in members’ capital or additional external borrowing.
• Assess impact of broader economic or property market downturns on asset values and cash flows.