GRACIE BARRA (HALTON WIDNES) LTD

Executive Summary

Gracie Barra (Halton Widnes) Ltd is a very small, early-stage company with minimal liabilities but negative net assets due to deferred income. It demonstrates adequate short-term liquidity but limited financial strength and resilience. Credit approval is possible on a conditional basis with careful monitoring of profitability, cash flow, and equity improvements.

GRACIE BARRA (HALTON WIDNES) LTD - Analysis Report

Company Number: 13952490

Analysis Date: 2025-07-20 11:17 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Gracie Barra (Halton Widnes) Ltd is a micro-entity engaged in physical well-being activities, operating since March 2022 with two directors/shareholders equally controlling the company. The latest financials show a modest asset base and very limited liabilities, but shareholders' funds are negative (£-77), primarily due to accruals and deferred income (£2,819) exceeding total assets less current liabilities. The company employs two people and shows some initial growth in fixed assets and current assets over two years. However, the negative equity position and small scale of operations suggest constrained financial flexibility. Credit approval could be considered with limits, monitoring, and possibly requiring personal guarantees or additional collateral due to the early stage and limited financial strength.

2. Financial Strength:
   The balance sheet is thin but clean, with negligible current liabilities (£1) and net current assets of £2,537, indicating adequate short-term asset coverage. Fixed assets are minimal (£205). Total assets less current liabilities improved to £2,742 in 2024 from £100 in 2023. However, the negative net assets and shareholders’ funds of £-77 reflect deferred income and accruals exceeding tangible equity, signaling that the company has yet to build retained earnings or reserves. This weak equity base limits resilience to adverse economic conditions or unexpected expenses.

3. Cash Flow Assessment:
   Current assets of £2,538 mainly comprise cash and receivables (exact breakdown not disclosed), with negligible current liabilities, suggesting positive working capital. The company’s liquidity appears sound for day-to-day operations, and no overdue filings or indications of payment difficulties are noted. However, the overall cash flow capacity is low due to the small scale of operations and limited asset base. The company’s ability to service debt will depend heavily on future revenue growth and cash inflows, which are not disclosed here.

4. Monitoring Points:

• Track subsequent filings for improved profitability and positive retained earnings to build equity.
• Monitor deferred income and accrual balances to ensure they convert properly into recognized revenue without causing cash shortfalls.
• Watch for any increase in liabilities or overdue payments that may indicate liquidity stress.
• Assess directors’ ability to inject capital or provide support if needed.
• Review business performance trends given the competitive nature of the physical well-being sector and company’s micro scale.