SIR LEONARD INC LIMITED

Executive Summary

Sir Leonard Inc Limited, incorporated in 2023, presents significant financial distress marked by negative net assets and a substantial working capital deficit driven by large current liabilities and minimal cash reserves. While statutory compliance is maintained and fixed asset investments exist, the liquidity risk is acute without clear evidence of realizable assets or confirmed shareholder backing. Further due diligence is essential to assess the recoverability of investments and the company’s operational viability.

SIR LEONARD INC LIMITED - Analysis Report

Company Number: 14736753

Analysis Date: 2025-07-29 13:22 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks, evidenced by net liabilities and a large current liability position relative to minimal current assets.

2. Key Concerns:

• Negative Net Assets: The company reports net liabilities of £16,702 and negative shareholders' funds, indicating insolvency on the balance sheet date.
• Severe Working Capital Deficit: Current liabilities of approximately £517,108 far exceed current assets of £406, resulting in a negative net working capital of £516,702, highlighting liquidity strain.
• Very Limited Cash Resources: Cash at bank is only £406, insufficient to meet short-term obligations, raising immediate liquidity concerns.

3. Positive Indicators:

• Substantial Fixed Asset Investments: The company holds unlisted investments valued at £500,000, which could potentially be a source of value or liquidity if realizable.
• No Overdue Filings: Accounts and confirmation statements are up to date, indicating compliance and good governance in statutory filings.
• Established Governance: Presence of a corporate director (R&H Trust Co UK Limited) and an individual director suggests formal management structures are in place.

4. Due Diligence Notes:

• Valuation and Liquidity of Investments: Investigate the nature, marketability, and realizable value of the £500,000 unlisted investments to assess their contribution to solvency.
• Creditor Composition and Terms: Clarify the makeup of the £517,108 current liabilities (other creditors and accruals), payment terms, and any potential for restructuring or deferral.
• Shareholders’ Support: Confirm the shareholders’ commitment to financial support as stated in the going concern note, including any formal agreements or capital injection plans.
• Currency Exposure: Since the financial statements are prepared in USD but the company is UK-based, review foreign currency risk and its impact on financial stability.
• Business Model and Revenue Generation: Limited information on operations; further inquiry into the company’s trading activities, revenue streams, and sustainability is required.