GRASHAM AND SONS LIMITED

Executive Summary

Grasham and Sons Limited is a newly established micro-entity in the medical nursing home sector with a modest equity base and limited working capital. The company currently exhibits a slight shortfall in liquidity but maintains positive net assets overall. Credit approval is recommended on a conditional basis, pending demonstration of improved cash flow management and financial stability in future periods.

GRASHAM AND SONS LIMITED - Analysis Report

Company Number: 14786048

Analysis Date: 2025-07-20 12:34 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Grasham and Sons Limited is a newly incorporated micro-entity (April 2023) operating in medical nursing home activities. The company shows very modest net assets (£196) and fixed assets (£1,183) as of April 2024, with a small negative net current assets position (-£144) when considering short-term liabilities, but overall positive net assets when including long-term liabilities. The director and sole shareholder has full control, indicating centralized decision-making. Given the company's early stage, limited financial history, and low asset base, credit approval should be conditional on evidence of stable cash flow generation and improved working capital management over time.

2. Financial Strength:
   The balance sheet reveals minimal fixed assets and current assets (£106), with current liabilities of £250 and longer-term liabilities of £843. Net current liabilities at £144 indicate some short-term liquidity pressure, but overall net assets are positive at £196. The micro-entity status and single employee imply a lean operation with limited scale and financial buffer. The capital and reserves reflect the initial investment and retained earnings, but the modest equity base limits the company’s capacity to absorb financial shocks.

3. Cash Flow Assessment:
   Current assets consist of a minimal cash or receivable base (£106) insufficient to cover current liabilities (£250), suggesting potential cash flow constraints in meeting short-term obligations without additional funding or improved receivables collection. The company’s cash conversion cycle and working capital management should be closely monitored. Since the company is only one year old, historical cash flow data is limited; however, the negative net current assets highlight the need for prudent liquidity management.

4. Monitoring Points:

• Monitor improvements in net current assets and liquidity ratios to ensure sufficient working capital.
• Track profitability and cash flow generation trends in subsequent accounting periods.
• Review any additional capital injections or external financing to support growth and liquidity.
• Evaluate any changes in director or ownership structure that may impact governance and financial stewardship.
• Monitor timely filing of accounts and confirmation statements to maintain compliance and transparency.