Company Number: 13352226

Analysis Date: 2025-07-29 20:26 UTC

Credit Opinion: DECLINE

Reasoning: GREEN FROG INDUSTRIES LIMITED shows a persistently weak financial position with significant net current liabilities and negative net assets for the past three years. The current liabilities have more than doubled from £1.0 million in 2021 to £2.4 million in 2022, while current assets increased only marginally, resulting in a working capital deficit of £-1.38 million. The company’s shareholders’ funds remain deeply negative at £-487,780, indicating accumulated losses and erosion of equity. The financial statements disclose a one-off loss but no clear evidence of consistent profitability or cash generation to cover liabilities. The company is a holding entity for power generation sites and commercial property rental, with large investments on the balance sheet (£598k investments and £285k investment properties), but these assets have not been sufficient to offset short-term obligations. The large current liabilities, mainly other creditors (£2.35 million), raise concerns about liquidity and repayment capacity.

Financial Strength: The balance sheet is fragile with negative net assets and large working capital deficits. Equity is eroded, and the company relies heavily on short-term creditors. Fixed and investment assets exist but are outweighed by current liabilities. No long-term borrowing is disclosed, but the creditor profile suggests possible reliance on trade or related party credit. The negative retained earnings indicate historical losses, undermining financial resilience.

Cash Flow Assessment: Cash on hand is modest (£102,625) compared to current liabilities, suggesting liquidity pressure. Debtors are substantial (£922,772) but may have collection risk given the company’s negative net asset position. The company’s ability to convert debtors to cash promptly is critical but unproven. The working capital deficit signals potential cash flow constraints to meet short-term obligations without additional funding or asset disposals.

Monitoring Points:

• Collection and ageing of trade and other debtors to ensure cash inflows.
• Changes in creditor terms and any increase in overdue payables.
• Profitability and cash flow trends in the current and next financial year.
• Any new capital injections from shareholders or related parties.
• Valuation and liquidity of investment properties and investments.
• Management actions to reduce liabilities or improve working capital.

Executive Summary: