GREEDY GANNET LTD

Executive Summary

Greedy Gannet Ltd is a micro-entity newly established in 2023, operating in the take-away food sector with limited financial resources and a very low equity base. The company’s balance sheet shows minimal net assets and potentially leveraged liabilities, indicating a high risk profile and limited debt servicing capacity at this stage. Without operational cash flow data or profitability history, extending credit is not advisable until financial stability improves and clearer evidence of sustainable cash generation is demonstrated.

GREEDY GANNET LTD - Analysis Report

Company Number: 14762246

Analysis Date: 2025-07-20 15:10 UTC

1. Credit Opinion: DECLINE
   Greedy Gannet Ltd is a newly incorporated micro-entity with limited financial history and very modest net asset value (£244). The balance sheet shows credit balances due after one year (£27,087), which likely represent long-term liabilities or loans close to the amount of current liabilities, indicating leveraged financial position. Negative net current liabilities and minimal equity suggest weak financial resilience and limited capacity to service additional debt. The company operates in a highly competitive and low-margin sector (take-away food), which can be vulnerable to economic fluctuations. Given the early stage, thin capitalization, and lack of historical profitability or cash flow data, the risk of default is high, and the company’s ability to meet credit obligations is uncertain.

2. Financial Strength:

• Fixed assets of £23,750 are modest and likely represent equipment or premises fit-out.
• Current assets of £3,581 vs current liabilities of £27,087 indicates current liabilities exceed current assets, though net current assets are reported as £3,581 which appears inconsistent and should be clarified.
• Total net assets are only £244, demonstrating minimal capital buffer.
• Shareholders’ funds mirror net assets, indicating no retained earnings or reserves.
• Overall, the balance sheet shows a leveraged position with minimal equity, raising concerns about solvency and financial flexibility.

3. Cash Flow Assessment:

• The limited current assets and relatively high current liabilities indicate working capital constraints.
• No profit and loss or cash flow statements are available to assess operational cash generation or liquidity.
• The small number of employees (3) keeps fixed overheads low but the business is likely cash tight.
• Absence of cash reserves or liquid assets heightens liquidity risk, especially if unexpected expenses or downturns occur.

4. Monitoring Points:

• Verify and monitor cash flow statements and profitability trends once available.
• Track working capital dynamics and ability to reduce liabilities or increase current assets.
• Observe any changes in long-term debt levels and equity injections.
• Watch for timely filing of accounts and confirmation statements to ensure compliance and transparency.
• Monitor sector conditions and competitive environment for impact on sales and margins.