Company Number: 12491200

Analysis Date: 2025-07-29 13:43 UTC

1. Risk Rating: HIGH
   GRAOLA LTD exhibits a high risk profile primarily due to persistent negative net assets, significant current liabilities exceeding current assets, and substantial director loans. The company’s solvency position is weak despite holding investment properties, and cash flow appears insufficient to cover short-term obligations.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The company has reported net liabilities of £7,237 as of August 2024, though improved from prior years, indicating ongoing accumulated losses or deficit equity.
• Liquidity Shortfall: Current liabilities (£223,968 within one year) far exceed current assets (£714 cash, negligible liquidity), resulting in a net current liability of £223,254, which suggests potential difficulty meeting short-term obligations.
• High Director Loans: £221,763 of current creditors relate to amounts owed to directors, highlighting reliance on insider funding with potential risk should directors withdraw support.

3. Positive Indicators:

• Investment Property Asset Growth: Investment property valued at £530,301, up from £519,720 in prior year, reflects potential asset appreciation supporting long-term value.
• No Overdue Filings: The company is compliant with statutory filing deadlines, indicating proper regulatory adherence and governance regarding annual accounts and confirmation statements.
• Stable Director Ownership and Management: Both directors retain significant share and voting control (25-50% each), and have been in position since incorporation, providing continuity.

4. Due Diligence Notes:

• Investigate terms and repayment plans of director loans and bank loans (£313,755 long-term liabilities) to assess refinancing risk and creditor arrangements.
• Review cash flow forecasts and rental income streams from investment properties to understand operational cash generation capacity.
• Clarify reasons for persistent negative equity and accumulated losses, including reviewing prior profit and loss accounts not included in the filing.
• Confirm valuation methodology and market assumptions behind the investment property fair value, given its key role in company asset base.
• Assess any contingent liabilities or off-balance sheet exposures not disclosed.