Company Number: 12744157

Analysis Date: 2025-07-19 13:05 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Everleaf Gardening Ltd shows some tangible asset base and equity, but the company currently has negative net working capital and significant secured finance lease obligations. The company has no employees beyond the director and limited cash reserves. Credit approval is conditional on monitoring cash flow closely and ensuring servicing of secured debt, as liquidity pressures may arise. The director’s full ownership and control provides clear accountability, but the limited operating scale and thin working capital require cautious credit exposure.

2. Financial Strength:
   The balance sheet as of 31 July 2024 reports net assets of £5,781, consisting largely of tangible fixed assets (£15,764 net book value) primarily plant and motor vehicles. However, current liabilities (£19,786) exceed current assets (£17,887), resulting in a net current liability position of £1,899. Longer term secured lease obligations of £8,084 highlight ongoing debt commitments. Share capital is minimal (£100), with retained profits of £5,681. Overall, the company is asset-backed but with constrained liquidity and leverage.

3. Cash Flow Assessment:
   Cash at bank is £15,237, which is moderate relative to current liabilities. Trade debtors are modest (£2,650), indicating limited receivables exposure. However, the company’s net current liability position and finance lease repayments secured against vehicles pose liquidity risks. With no employees and minimal operating scale, cash flow generation depends heavily on maintaining contract revenues and controlling overheads. The company must maintain timely collections and manage creditor payments carefully to avoid cash shortfalls.

4. Monitoring Points:

• Liquidity trends: monitor cash balances and working capital closely on a monthly basis.
• Debt servicing: ensure timely payment of lease and loan obligations secured against vehicles.
• Revenue and receivables: track contract income and debtor ageing to avoid late payments.
• Asset maintenance: monitor condition and utilization of tangible fixed assets to preserve value.
• Director involvement: assess any changes in management or shareholder control that could impact governance or financial strategy.