Company Number: 13528757

Analysis Date: 2025-07-29 15:53 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   24 GREYWELL LIMITED shows an active trading status with recent filings up to date and no overdue returns. The company operates in the real estate sector with a focus on letting and dealing in own or leased property. However, the financials reveal a fragile equity position with net assets barely positive at £1,298 in 2024, down from negative £5,650 in 2023, due to a significant long-term creditor liability of £234,000 introduced in 2024. Current liabilities exceed current assets by a wide margin, indicating working capital stress. Approval is conditional on demonstrating improved liquidity management and securing additional equity or reducing debt levels to ensure sustainable debt servicing.

2. Financial Strength:
   The company’s balance sheet shows growth in fixed assets from £349,757 (2023) to £486,967 (2024), suggesting investment or acquisition activity. However, current assets are negligible (£271), while current liabilities remain very high (£251,940), resulting in a large negative net current asset position (-£251,669). The introduction of £234,000 creditors due after one year adds to leverage concerns. Shareholders’ funds are minimal (£1,298), indicating very low equity buffer and potential solvency risk if asset values decline or liabilities crystallize. The company operates as a micro-entity, limiting the granularity of financial data but the current structure suggests a highly leveraged small business with limited financial strength.

3. Cash Flow Assessment:
   The company’s current assets (mainly cash and receivables) are insufficient to cover short-term liabilities, risking liquidity shortfalls. Working capital is deeply negative, which could impair the ability to meet immediate obligations without refinancing or capital injection. The average employee count increased from 1 to 2, indicating some operational scaling, but with minimal current assets, cash flow sufficiency is questionable. No detailed cash flow statement is available, but the micro-entity accounts imply tight cash resources. Careful monitoring of receivables collection, creditor terms, and capital structure will be essential.

4. Monitoring Points:

• Liquidity and working capital ratios (current ratio, quick ratio) to detect improvement or deterioration.
• Timely servicing of both short-term creditors (£251,940) and long-term creditors (£234,000).
• Changes in fixed asset values and their impact on valuation and loan collateral.
• Equity movements and any capital injections by shareholders to strengthen the balance sheet.
• Director related party transactions or loans given the high director/shareholder control concentration.
• Operational performance indicators especially rental income stability given SIC codes in real estate letting and sales.