LYRICAL LTD

Executive Summary

LYRICAL LTD is financially weak with a recent negative net asset position and working capital deficit, indicating poor liquidity and limited ability to meet obligations. The company’s micro entity status and lack of operational scale further constrain creditworthiness. Declining financial metrics and absence of meaningful equity advise against extending credit at this time.

LYRICAL LTD - Analysis Report

Company Number: 12682591

Analysis Date: 2025-07-29 15:06 UTC

1. Credit Opinion: DECLINE. LYRICAL LTD shows a deteriorating financial position with net current liabilities of £268 as of June 2024, following a prior year net current asset position of £2,041. The company is a micro-entity with minimal capital (£2 share capital) and no employees, indicating limited operational scale and financial resilience. The negative working capital and net liabilities position signal potential liquidity issues and inability to meet short-term obligations without external support. The lack of audited accounts and absence of significant assets or equity buffer further exacerbate credit risk. Given these factors, the company is currently not financially viable to support new credit facilities.

2. Financial Strength: The balance sheet shows a decline in net assets from £2,041 in 2023 to a negative £268 in 2024, indicating erosion of equity and potential losses. Current assets rose modestly from £751 to £3,106, but current liabilities increased disproportionately from £2,792 to £3,374. The company carries no fixed assets, and shareholder funds have turned negative, reflecting an accumulated deficit or losses. The micro classification and minimal share capital limit financial flexibility. This weak financial footing points to constrained ability to absorb shocks or invest in growth.

3. Cash Flow Assessment: The company exhibits a working capital deficit as of the latest accounts, with current liabilities exceeding current assets. This suggests cash flow pressure and potential difficulties in meeting short-term creditor demands. No employees and minimal operational scale imply limited cash generation capacity. The absence of detailed cash flow statements prevents a full liquidity analysis, but the balance sheet position alone raises concerns about ongoing operational cash sufficiency.

4. Monitoring Points:

• Monitor quarterly cash flow and current liabilities to detect worsening liquidity.
• Track any changes in directors or PSCs that might affect governance.
• Watch for any late filings or missed statutory deadlines as early warning signs.
• Review forthcoming accounts for improvement or further deterioration in net assets.
• Assess any new business developments or contracts that could enhance revenue and cash inflows.