GRAPHENE FOUNDATIONS LTD

Executive Summary

Graphene Foundations Ltd exhibits weak financial health with significant working capital deficits and minimal equity, impairing its ability to service short-term obligations. Current trends show declining net assets and insufficient liquidity, raising credit risk concerns. Without improved cash flow or capital injection, the company is unlikely to sustain credit facilities reliably.

GRAPHENE FOUNDATIONS LTD - Analysis Report

Company Number: 14015961

Analysis Date: 2025-07-29 15:56 UTC

1. Credit Opinion: DECLINE. Graphene Foundations Ltd is a micro-entity in the property management and real estate investment sector with minimal current asset liquidity and a pattern of net current liabilities. Despite being active and having no overdue filings, the company’s financials reveal weak working capital and very low net asset values, indicating limited capacity to meet short-term obligations or service debt. The absence of employees and minimal current assets further suggest limited operational cash flow. The financial trajectory shows a decline in net assets from £13,835 in 2024 to £8,360 in 2025, highlighting weakening financial strength.

2. Financial Strength: The company’s balance sheet is fragile. Fixed assets increased from £237,997 to £337,015 year-over-year, but current liabilities rose significantly to £338,890, exceeding both current assets (£10,235) and fixed assets. The net current assets are deeply negative (-£328,655), signaling working capital deficiencies. Total net assets are positive but very low at £8,360, indicating negligible equity buffer. This limited equity and high short-term creditors expose the company to liquidity risk and financial stress in adverse conditions.

3. Cash Flow Assessment: Liquidity is a major concern. Current assets are very low and insufficient to cover current liabilities, resulting in a significant working capital deficit. The company employs no staff and has no clear revenue or cash inflows reported, further stressing its ability to generate operational cash flow. The negative net current assets imply reliance on external funding or shareholder support. Without improvement in cash conversion or reduction in short-term liabilities, the company is at risk of cash flow strain.

4. Monitoring Points:

• Track changes in current liabilities and current assets to monitor working capital trends.
• Review any upcoming financing arrangements or shareholder injections to support liquidity.
• Monitor net asset movements and whether fixed assets are generating revenue or just capital locked.
• Check for emergence of operational cash flows or changes in business scale, especially employee numbers.
• Watch director actions and related party transactions given single director/shareholder control.