Company Number: 13631096

Analysis Date: 2025-07-20 11:45 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   GRA ESTATES LTD shows some signs of stability but also significant liquidity concerns. The company’s net current liabilities have worsened substantially in the latest year due to current liabilities rising sharply against a drop in current assets. This raises questions about short-term cash flow strain and ability to meet immediate obligations without refinancing or capital injection. However, the presence of fixed assets valued at £411,501 and positive net assets (£8,365) indicates some underlying asset strength. The company’s short trading history (since 2021) and micro-entity status limit the data, so approval should be conditional on monitoring liquidity and working capital improvements.

2. Financial Strength:
   The balance sheet reflects a small but positive net asset base (£8,365) supported by fixed assets acquired in the latest period. The sharp increase in current liabilities from £135,542 to £415,237 alongside a steep decline in current assets from £138,181 to £12,101 causes net current assets to move from a positive £2,639 in 2023 to a negative £403,136 in 2024. This deterioration signals potential solvency risk if liabilities fall due before assets can be realized or cash generated. Shareholders funds increased but remain modest, limiting the buffer against unexpected losses.

3. Cash Flow Assessment:
   The company’s liquidity position appears constrained given the low current assets and high current liabilities as of the last financial year end. The absence of employees suggests a low operational cost base, but the working capital deficit indicates possible reliance on external funding or creditor terms to finance ongoing operations. No cash flow statement is provided, but the balance sheet signals tight short-term cash flows and the need for improved cash management or capital support to avoid payment delays.

4. Monitoring Points:

• Track quarterly cash flow and working capital changes to ensure ability to meet short-term obligations.
• Monitor the composition and maturity profile of current liabilities to assess refinancing risk.
• Watch for improvements in current assets or capital injections that strengthen liquidity.
• Review trading performance and any changes in asset utilization or acquisitions that impact financial stability.
• Assess management actions to improve cash collections or reduce creditor exposure.