Company Number: NI691951

Analysis Date: 2025-07-19 12:55 UTC

1. Credit Opinion: APPROVE with caution. GRANITE (N.I.) LIMITED is a micro-entity active for just over one year, operating in fitness facilities. The company shows a modest net asset base (£7,773) with fixed assets comprising the majority of the balance sheet. While the current liabilities exceed current assets by £24,209 (net current liabilities), the overall net assets remain positive, indicating some financial cushion. Given the short operating history, small scale, and concentration of control in one director/shareholder, credit exposure should be limited and monitored closely. Approval is appropriate for small credit facilities with conditional review of cash flow forecasts and business plan updates.

2. Financial Strength:

• Total net assets of £7,773, supported by fixed assets (£31,982) mainly equipment or property related to fitness facilities.
• Net current liabilities of £24,209 indicate working capital constraints; the company has more short-term obligations than current liquid assets.
• Shareholders’ funds equal net assets, reflecting no debt financing or external equity.
• The micro-entity status and small scale with only 1 employee limit disclosure but suggest early stage business.
• Positive net assets but liquidity pressure from current liabilities warrants conservative financial management.

3. Cash Flow Assessment:

• Current assets at £2,731 are low, primarily cash or short-term receivables.
• Current liabilities at £26,940 likely include trade creditors and accrued expenses.
• Negative net current assets indicate tight liquidity position; company may face short-term cash flow challenges.
• No detailed P&L or cash flow statements provided, so assumptions must be cautious.
• Reliance on owner’s capital (shareholder funds) and need for ongoing working capital support is evident.

4. Monitoring Points:

• Track quarterly cash flow and working capital trends to ensure the company can meet short-term obligations.
• Monitor any increases in current liabilities or depletion of current assets that may signal liquidity stress.
• Review updates on revenue growth and profitability as the company matures beyond first year.
• Observe any changes in director/shareholder structure that might affect governance and financial stewardship.
• Confirm timely filing of accounts and confirmation statements to identify compliance risks.