RED FOX LEMON LTD

Executive Summary

Red Fox Lemon Ltd is a newly formed IT consultancy company with a strong cash position and positive net assets in its first financial year. The company demonstrates adequate liquidity and no debt obligations, reflecting sound initial financial stewardship. Credit approval is recommended with ongoing monitoring of trading performance and cash flow to support future credit facilities.

RED FOX LEMON LTD - Analysis Report

Company Number: 15170012

Analysis Date: 2025-07-20 19:16 UTC

1. Credit Opinion: APPROVE

Red Fox Lemon Ltd is a recently incorporated private limited company (incorporated Sept 2023) operating in the IT consultancy sector. The company’s first-year filing shows a positive net asset position, with shareholders' funds at £48,491 and net current assets of £46,962. Its cash balance of £81,340 comfortably covers current liabilities of £34,378, indicating adequate liquidity to meet short-term obligations. There is no indication of overdue filings or regulatory concerns. The company has only two directors who are also significant shareholders, suggesting clear management control and accountability. Given the early stage, the financials are limited but show no adverse signs. Approval for credit facilities is reasonable with standard monitoring.

2. Financial Strength:

The balance sheet shows modest tangible fixed assets (£1,529) relative to cash holdings (£81,340). Total assets less current liabilities stand at £48,491, representing the shareholders’ funds. The company’s capital structure is minimal with only £100 share capital issued, which is typical for new startups. The strong cash position versus current liabilities indicates a solid working capital base. No long-term liabilities or bank debts are reported, which reduces financial risk. Overall, the financial strength is sound for a startup with no debt burden and positive equity.

3. Cash Flow Assessment:

Cash at bank of £81,340 exceeds current liabilities by more than 2.3 times, showing good liquidity. Net current assets of £46,962 confirm that the company has sufficient short-term resources to cover its obligations. The absence of bank borrowings suggests the company currently relies on equity and internal cash generation. However, as the company is in its first year, ongoing cash flow monitoring is essential to ensure sustainable operational cash generation once trading fully commences. The working capital position is healthy at this stage.

4. Monitoring Points:

• Revenue and profit generation trends in subsequent filings to assess business viability and growth.
• Cash flow statements when available to confirm operational liquidity beyond initial capital injection.
• Management of tax and social security liabilities (£12,266) to avoid compliance risks.
• Any new borrowings or changes in capital structure that may affect financial risk.
• Directors’ ongoing involvement and any changes in ownership or control that could impact governance.