Company Number: 15211154

Analysis Date: 2025-07-29 14:46 UTC

1. Risk Rating: LOW

Justification: LML FINANCE LIMITED is a recently incorporated micro-entity with minimal liabilities and positive net current assets. The company is up to date with filings and shows a modest but positive equity base, indicating initial financial stability. There is no indication of financial distress or regulatory non-compliance.

2. Key Concerns:

• Limited financial history: Being incorporated in October 2023, the company has only one financial year of data, limiting trend analysis or assessment of operational resilience.
• Small asset and equity base (£5,625): This minimal capitalization may constrain the company’s ability to absorb shocks or scale operations without additional funding.
• Concentrated ownership and control: One corporate entity (Tmg Direct Limited) holds majority shareholding and voting rights, with a single director involved, which could present governance risks if not managed appropriately.

3. Positive Indicators:

• Current and confirmation statement filings are timely and not overdue, indicating good regulatory compliance.
• Positive net current assets (£5,625) with current assets exceeding current liabilities suggest sound short-term liquidity.
• The company employs two individuals, suggesting initial operational activity beyond just the director.

4. Due Diligence Notes:

• Review the nature and terms of any related party transactions or financing provided by the controlling shareholder (Tmg Direct Limited).
• Verify the business model and revenue generation plans given the micro-entity status and limited financial scale.
• Monitor subsequent filings and financial statements for growth, profitability, and changes in capital structure.
• Confirm no director disqualifications or adverse conduct records for Mr Scott Thorpe.
• Evaluate the company’s compliance with applicable financial intermediation regulations given its SIC classification.