S&L LETS LTD

Executive Summary

S&L LETS LTD is a micro-entity with minimal assets and no staff beyond its sole director, showing recent improvement in working capital and equity. While regulatory compliance is sound, the company's limited operational scale and thin equity base present moderate solvency and liquidity risks. Further due diligence on asset composition and business viability is recommended to fully assess the company's financial stability.

S&L LETS LTD - Analysis Report

Company Number: 13735904

Analysis Date: 2025-07-29 17:41 UTC

1. Risk Rating: MEDIUM

The company shows improvement in net current assets and net assets over the last year, moving from negative working capital and low equity to a modestly positive position. However, the absolute asset values and equity remain very small, and the business has no employees aside from the director, indicating limited operational scale and potential vulnerability to cash flow fluctuations.

2. Key Concerns:

• Limited scale and operational activity: The company has no employees and minimal fixed and current assets, which raises questions about the sustainability of its business operations and revenue generation capabilities.
• Thin equity base: Although improved, net assets of £183 remain very low, leaving little buffer against unforeseen liabilities or trading losses.
• Volatility in current assets and liabilities: A significant drop from £3,278 to £555 in current assets and a corresponding reduction in current liabilities may reflect changes in creditor/debtor balances or business activity, requiring further explanation.

3. Positive Indicators:

• Improved working capital: Movement from negative to positive net current assets signals better short-term liquidity management over the last financial year.
• Timely filing and compliance: Accounts and confirmation statement are up to date with no overdue filings, indicating good regulatory compliance.
• Clear ownership and control: A single director and 75-100% controlling shareholder simplifies governance and decision-making processes.

4. Due Diligence Notes:

• Investigate the nature of current assets and liabilities to understand the causes of volatility and whether these relate to trade receivables, payables, or other balances.
• Clarify the business model and revenue streams given the micro-entity status and absence of employees.
• Review director’s plans for scaling operations and financial forecasts to assess sustainability.
• Confirm no related party transactions or contingent liabilities exist that are not evident in the accounts.