Company Number: 13905086

Analysis Date: 2025-07-20 19:05 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Grabzilla Limited is a very young company (incorporated in 2022) operating in the non-hazardous waste collection sector. The latest accounts show a significant decline in liquidity with net current liabilities of £7,421 as of 31 March 2024, compared to net current assets of £9,078 in the previous year. The company has invested heavily in fixed assets during the latest period, increasing tangible assets to £26,253 from £1,032, which suggests capital expenditure possibly to support growth. However, the current liabilities have more than doubled, primarily due to an increase in “other creditors” and taxation liabilities, raising concerns over short-term cash flow management. The directors are also indebted to the company by approximately £19,700 combined, indicating possible reliance on director loans. Hence, credit approval is conditional on improved working capital management and monitoring of creditor payments.

2. Financial Strength:
   The company’s balance sheet shows total assets less current liabilities of £18,832, up from £10,110 the prior year, primarily driven by fixed asset additions. Shareholders’ funds increased accordingly to £18,832 from £10,110, indicating some retained earnings growth. However, the negative net current assets position reflects a weak short-term financial position, which could impair the ability to meet immediate obligations without additional financing or better cash collection. The absence of employees suggests a lean operation, but also indicates limited operational scale at this stage.

3. Cash Flow Assessment:
   Cash at bank decreased significantly from £18,653 to £9,913, while debtors increased from £3,831 to £15,756, which may point to slower collections or extended credit terms. The rise in current liabilities, particularly “other creditors” from £9,800 to £22,712, indicates higher payables possibly stretching supplier terms. The cash conversion cycle appears extended, placing pressure on liquidity. Director loan accounts show net amounts owed to the company by directors, but these are relatively small compared to creditor balances. Overall, liquidity is currently strained and requires close monitoring.

4. Monitoring Points:

• Watch working capital trend, especially current liabilities and debtor collection efficiency.
• Monitor cash balances monthly to ensure sufficient liquidity for creditor payments.
• Review the impact of fixed asset investments on operational cash flow.
• Track director loan balances and any further financing from key controllers.
• Confirm ongoing profitability and turnover growth once income statement data becomes available.