GRAZE ON THE HILL LIMITED

Executive Summary

GRAZE ON THE HILL LIMITED shows a weak financial position with persistent negative net assets and inadequate liquidity, posing a high credit risk. The company’s inability to cover current liabilities with cash and its ongoing net liabilities suggest an inability to meet debt obligations. Credit facilities are not recommended without significant improvement in financial health.

GRAZE ON THE HILL LIMITED - Analysis Report

Company Number: 13170937

Analysis Date: 2025-07-29 16:58 UTC

1. Credit Opinion: DECLINE
   GRAZE ON THE HILL LIMITED presents significant credit risk. The company has been consistently reporting negative net assets and shareholders' funds since incorporation, reaching -£303 at the last accounting date. The net current liabilities position worsened in the latest year, indicating inadequate working capital. The absence of positive equity and persistent net liability position signals inability to meet short-term obligations reliably. Given the small scale of operations, lack of profitability data, and weak balance sheet, extending credit or lending facilities is not advisable at this stage.

2. Financial Strength:
   The balance sheet reflects very weak financial health. The company’s current assets are minimal (£657 cash in 2024), and current liabilities have more than doubled from £440 to £960 in the last year, resulting in net current liabilities of -£303. The continued negative net assets (-£303) and shareholders' funds (-£305) show accumulated losses or undercapitalization. There are no fixed assets reported. Overall, the company is technically insolvent on a net asset basis and shows no retained earnings.

3. Cash Flow Assessment:
   Cash holdings are extremely limited and barely cover a fraction of current liabilities, indicating poor liquidity. The company’s working capital deficiency suggests difficulty in funding day-to-day operations without external cash injections. No trade debtors or stock are reported, so the cash position is the sole liquid resource. The lack of positive cash flow or reserves raises high concerns about the company’s ability to service debts or meet financial commitments in the near term.

4. Monitoring Points:

• Monitor changes in net current assets and net liabilities to detect any improvement or worsening in liquidity and solvency.
• Track cash flow statements (if available) to assess operational cash generation or dependency on external funding.
• Watch for any capital injections or loans that might improve balance sheet strength.
• Review management’s plans for profitability and working capital management in future filings.
• Observe any signs of overdue filings or director changes that might signal distress.