Company Number: 13253587

Analysis Date: 2025-07-20 16:56 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Feature Greens Ltd is a micro-entity operating in landscape service activities since 2021. The company is active with no overdue filings and has a stable management team with no director disqualifications. However, the financial data for the year ending March 2024 shows a weakening balance sheet with net assets declining from £22,942 to £6,246 and significant net current liabilities of £19,784. The company’s liquidity position is concerning, as current liabilities exceed current assets by a sizable margin, indicating potential short-term cash flow strain. Given these conditions, credit approval is conditional upon receiving additional assurances about cash flow management and the company’s plans to restore working capital adequacy.

2. Financial Strength:
   The company’s fixed assets have decreased modestly from £51,004 to £42,668, while current assets have nearly halved from £9,734 to £5,055. Current liabilities have increased notably to £24,839, leading to net current liabilities of £19,784, up from £6,133 last year. Long-term liabilities have decreased from £21,929 to £16,638, but the reduction in net assets from £22,942 to £6,246 reflects erosion of shareholder equity and retained earnings. The small share capital (£150) indicates limited equity buffer. Overall, the balance sheet shows weakened financial resilience with a stressed liquidity position and diminished equity base.

3. Cash Flow Assessment:
   The negative net current assets indicate working capital deficits, implying the company may face difficulties meeting short-term obligations without external funding or improved cash inflows. The drop in current assets and rise in current liabilities suggest increased reliance on short-term creditors or delayed receivables. Absence of profit and loss data limits full cash flow visibility, but the balance sheet trends highlight liquidity risk. Monitoring of cash conversion cycle, debtor collections, and creditor terms is essential.

4. Monitoring Points:

• Quarterly updates on cash flow forecasts and working capital management.
• Timely filing of next accounts and confirmation statements to maintain compliance.
• Any changes in director appointments or PSC structure.
• Potential capital injections or debt restructuring to improve the equity base.
• Profitability trends once profit and loss accounts become available.