GRAPH'S GAFF LTD

Executive Summary

Graph's Gaff Ltd is a newly established holiday accommodation business with a currently weak liquidity position and modest equity base. Conditional credit approval is recommended, contingent on improvements in working capital and cash flow management as the company develops its trading operations. Close monitoring of financial performance and compliance filings is essential to mitigate credit risk.

GRAPH'S GAFF LTD - Analysis Report

Company Number: 14785257

Analysis Date: 2025-07-20 13:09 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Graph's Gaff Ltd is a recently incorporated private limited company operating in the holiday accommodation sector. The company shows a modest net asset base and a small negative working capital position. While it is too early to assess long-term creditworthiness definitively, the presence of net liabilities in current assets and limited cash on hand indicate tight liquidity. Approval is conditional on ongoing trading performance and the director’s ability to improve working capital and cash flow metrics.

2. Financial Strength:
   The balance sheet as of 30 April 2024 shows net assets of £521, reflecting a small equity base with £100 in share capital and £421 retained earnings. Fixed assets net of depreciation stand at £1,868. Current liabilities exceed current assets by £1,206, indicating negative working capital. Provisions for liabilities of £141 further constrain net assets. The company's financial position is fragile due to limited capitalisation and a deficit in short-term liquidity, typical of a start-up phase business. No audit was performed, so figures are unaudited.

3. Cash Flow Assessment:
   Cash at bank and in hand is £1,871, which is insufficient to cover current liabilities of £3,077. Negative net current assets imply the company relies on timely collection of receivables, possibly external funding, or director support for liquidity. The absence of an income statement limits visibility on operating cash generation; however, the initial trading period may involve cash outflows as business ramps up. Careful management of payables and receivables, along with controlled capital expenditure, will be critical to avoid liquidity stress.

4. Monitoring Points:

• Improvement in working capital ratio and reduction of current liabilities relative to current assets.
• Cash flow trends from ongoing operations in subsequent accounting periods.
• Timely filing of accounts and confirmation statements to maintain regulatory compliance.
• Director’s track record in managing financial performance and scaling the business.
• Impact of the holiday accommodation industry trends and seasonal demand fluctuations on revenue stability.