GRAMPIAN PATTERN PAVE LTD

Executive Summary

Grampian Pattern Pave Ltd demonstrates moderate financial strength with positive net assets but faces liquidity challenges evidenced by negative net current assets. The company is early-stage with limited financial history, requiring cautious credit exposure and close monitoring of cash flow and working capital management. Directors are stable, and filings are current, supporting conditional credit approval with prudent limits.

GRAMPIAN PATTERN PAVE LTD - Analysis Report

Company Number: SC676405

Analysis Date: 2025-07-29 13:21 UTC

1. Credit Opinion: CONDITIONAL APPROVAL. Grampian Pattern Pave Ltd is a micro entity established in 2020 with a niche construction installation focus. While the company shows positive net assets (£83,893) as of February 2024, it reports negative net current assets (-£80,633) indicating short-term liquidity pressures. Directors appear stable with no adverse records, and the business is active with no filing delays. However, working capital deficits and limited financial history warrant cautious credit limits and ongoing monitoring.

2. Financial Strength: The company holds fixed assets valued at £173,168 but current liabilities (£114,507) exceed current assets (£33,774), creating a net current asset deficit. After accounting for long-term liabilities (£6,413 and £2,229), net assets stand at £83,893, reflecting shareholder equity strength. The balance sheet is asset-rich but liquidity-constrained. The share capital is minimal (£100), typical for a micro entity, but overall equity supports a modest capital base.

3. Cash Flow Assessment: Negative net working capital suggests potential cash flow stress in meeting short-term obligations. The company likely relies on fixed assets and owner funding rather than liquid assets. Absence of a profit and loss account filing limits detailed cash flow visibility. Given the small size and nature of operations, cash flow management must be closely supervised to avoid liquidity shortfalls, especially as the company grows.

4. Monitoring Points:

• Net current assets and liquidity ratios to ensure short-term obligations are met.
• Profitability trends once P&L data become available.
• Timely filing of accounts and confirmation statements to avoid compliance risk.
• Any changes in director ownership or financial structure.
• External economic factors impacting the construction installation sector.