Company Number: 12505225

Analysis Date: 2025-07-29 14:04 UTC

1. Credit Opinion: APPROVE
   Gray & Amor Ltd. demonstrates a strong and improving financial position with increasing net assets and working capital. The company operates in the development of building projects, a sector that can be capital intensive but shows good asset growth here. Directors have maintained timely filings and no adverse status indicators exist. The loan to a related party is disclosed transparently and interest income is being generated, reflecting sound financial management. Overall, the company appears capable of servicing credit facilities with low risk.

2. Financial Strength:
   The balance sheet shows solid growth over five years, with net assets increasing from £23,660 in 2020 to £354,291 in 2025. Fixed assets have grown steadily, currently at £89k, supporting operational capacity. Current assets are strong at £438k, including £195k cash and £210k debtors (largely a long-term related party loan), compared to current liabilities of £173k. Shareholders’ funds have grown significantly, indicating retained earnings and capital accumulation, supporting solvency and financial resilience.

3. Cash Flow Assessment:
   Cash at bank decreased from £317k in 2024 to £195k in 2025 but remains substantial relative to liabilities. Net current assets improved to £265k, up from £247k the prior year, indicating good short-term liquidity. The company has low gearing risk as no borrowings are reported, and working capital is positive and growing. The related party loan of £162k extends beyond one year, which reduces immediate cash flow pressure but is earning interest, contributing to income.

4. Monitoring Points:

• Monitor the collectability of trade debtors and the related party loan; although interest is charged, reliance on related party transactions can pose risk.
• Watch cash balances closely as a significant reduction occurred in the latest year; ensure operational cash flow remains sufficient.
• Track project completion and contract profitability given the sector’s exposure to market cycles and capital requirements.
• Review any changes in director involvement or related party arrangements that could affect financial stability.