Company Number: 13680327

Analysis Date: 2025-07-29 20:07 UTC

1. Credit Opinion: DECLINE
   Graceo Corp Ltd shows significant financial distress as of the latest accounts. The company’s net current liabilities have increased sharply from positive £7,283 in 2022 to negative £39,462 in 2023, indicating an inability to meet short-term obligations from current assets. The negative net assets of £39,462 reflect accumulated losses and insufficient equity. Given these indicators, the company currently lacks the financial strength to service debt or sustain additional credit without material risk.

2. Financial Strength:
   The balance sheet reveals a deteriorating financial position. Current liabilities have halved from approximately £82,631 in 2022 to £41,464 in 2023, but current assets plummeted from £89,914 to just £2,003, resulting in a large working capital deficit. Net assets have swung to a negative position, eroding shareholders’ funds. The company’s micro-entity status means limited disclosure, but the sharp drop in liquidity and net worth signals weak financial resilience.

3. Cash Flow Assessment:
   The drastic reduction in current assets, likely cash or receivables, suggests severe liquidity constraints. With current liabilities exceeding current assets by over £39k, Graceo Corp Ltd faces difficulty in meeting short-term commitments. The average employee count remains one, indicating a small operational scale, but the lack of working capital raises concerns on operational cash flow sufficiency.

4. Monitoring Points:

• Monitor quarterly cash balances and current liabilities to assess liquidity trends.
• Watch for any new capital injections or debt restructuring that could improve net assets.
• Track operating income or revenue generation to evaluate if the company can improve cash flow.
• Review director conduct and any changes in ownership or control that might affect governance and financial stewardship.