GRATEFUL HEART LIMITED

Executive Summary

Grateful Heart Limited operates with a very modest balance sheet and limited liquidity, showing minimal net assets and negative working capital. While the company is active with stable ownership, its constrained cash flow and high current liabilities relative to assets present a risk for credit extension. Credit approval is conditional, requiring close financial monitoring and potentially secured terms.

GRATEFUL HEART LIMITED - Analysis Report

Company Number: 12768851

Analysis Date: 2025-07-29 17:31 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Grateful Heart Limited is a micro-entity operating in the real estate sector with very modest financial scale and limited current assets. The company shows a positive net asset position but very low liquidity and working capital, which raises concerns about its ability to meet short-term obligations comfortably. The single director and controlling shareholder appears stable, with no adverse conduct records. Given the stable but minimal balance sheet and absence of trading activity or employees, credit facilities could be extended subject to close monitoring and possibly secured arrangements.

2. Financial Strength:
   The company’s net assets are positive but minimal (£361 as of April 2024), comprising mainly of fixed assets valued at £2,226 and current liabilities of £1,865. There is no recorded current asset balance, suggesting no cash or debtors to cover short-term debts. The balance sheet shows a slight decline from prior years in net assets and an increase in current liabilities, indicating some deterioration in financial robustness. Given the micro-entity status and small scale, the company does not have significant capital buffers.

3. Cash Flow Assessment:
   The absence of current assets and negative net current assets (£1,865 liabilities exceeding zero assets) imply very limited liquidity and working capital. This situation suggests the company might struggle to meet immediate liabilities without external funding or asset sales. The lack of employees and minimal operational scale imply low operating expenses, but also limited income generation capability. Cash flow appears constrained, and the company’s ability to service debt or absorb financial shocks is weak.

4. Monitoring Points:

• Track changes in current liabilities and any build-up of short-term debt.
• Monitor cash or equivalents and debtor levels for liquidity improvements.
• Review any changes in fixed asset valuation or disposals that might affect net assets.
• Watch for any filings indicating operational scale changes (e.g., staff hires, revenue increases).
• Assess director actions for capital injections or restructuring to improve financial position.