500 GREEK STREET LIMITED

Executive Summary

500 Greek Street Limited demonstrates improving liquidity and working capital, supported by increased cash balances and current assets, but remains in a net liability position due to accumulated losses. Credit approval is feasible on a conditional basis, emphasizing close monitoring of cash flow, debtor quality, and future profitability. The company’s ultimate creditworthiness hinges on sustained operational cash generation and ongoing support from its parent company.

500 GREEK STREET LIMITED - Analysis Report

Company Number: 13802962

Analysis Date: 2025-07-29 19:28 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   500 Greek Street Limited is a relatively young private limited company engaged in letting and operating its own or leased real estate. The company shows improving liquidity and working capital in the latest reported year, supported by increased cash balances and current assets. However, the company reports a net liability position (negative shareholders’ funds) as of 31 December 2023, reflecting accumulated losses. Given the negative net assets but positive short-term liquidity and backing by a parent company with controlling interest, credit approval is possible with conditions such as monitoring financial performance closely and possibly requiring guarantees or security. The company’s ability to service debt depends on continued cash flow and capital support.

2. Financial Strength:

• Fixed assets stand at £93,622, slightly decreased from the prior year, reflecting modest investment in tangible assets.
• Current assets increased significantly to £316,867 (including cash of £119,359), indicating improved liquidity compared to £205,918 the previous year.
• Current liabilities rose to £357,269, but net current assets remain positive at £227,009, a strong working capital position.
• Long-term liabilities or creditors after one year total £357,269, contributing to a net liability (negative equity) of £36,638, suggesting the company has drawn on financing beyond its asset base.
• The company’s negative shareholders’ funds raise concerns about accumulated losses or funding structure but may be mitigated by the parent company’s control and support.

3. Cash Flow Assessment:

• Cash reserves improved markedly to £119,359 from £2,841, indicating better short-term liquidity and ability to meet immediate obligations.
• Debtors remain significant at £197,508, which should be assessed for collectability to ensure cash inflows.
• The positive net current assets of £227,009 indicate sufficient short-term assets to cover current liabilities.
• No direct cash flow statement is provided, but the balance sheet movements imply improved cash management and working capital control in 2023.
• Ongoing monitoring of cash flow generation from operations is essential due to negative net assets and reliance on external funding.

4. Monitoring Points:

• Track monthly cash flow and debtor collection to ensure liquidity remains adequate to service short-term liabilities.
• Monitor net asset position and profitability trends in future accounts to assess whether accumulated losses are being reversed.
• Review the company’s borrowing terms and any related party financing arrangements, given negative equity and long-term liabilities.
• Ensure compliance with filing deadlines and director changes to avoid administrative risks.
• Watch for any material changes in property valuations or lease arrangements that could impact asset values or income streams.