GREEN LIGHT PRODUCE SOLUTIONS LIMITED

Executive Summary

GREEN LIGHT PRODUCE SOLUTIONS LIMITED demonstrates a sound financial foundation with strong liquidity and positive net assets after its first year of trading. While the company is financially healthy at this early stage, careful management of tax liabilities and a focus on building operational profitability will be crucial to sustaining and enhancing its financial wellness. Regular financial monitoring and proactive cash flow management are recommended to maintain this positive trajectory.

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Company Analysis

This analysis is opinion only and should not be interpreted as financial advice.

GREEN LIGHT PRODUCE SOLUTIONS LIMITED - Analysis Report

Company Number: 15168596

Analysis Date: 2025-07-20 13:42 UTC

Financial Health Assessment for GREEN LIGHT PRODUCE SOLUTIONS LIMITED


1. Financial Health Score: B

Explanation:
The company shows a solid financial footing for its first accounting period with healthy liquidity and positive net assets. The absence of debt beyond current liabilities and positive working capital indicate good initial financial stability. However, as a very young company with only one financial period completed, there is limited historical data to fully assess sustainability and operational profitability. Hence, a grade B reflects promising health with some caution due to the early stage of the business.


2. Key Vital Signs

Metric Value (£) Interpretation
Cash at bank 231,039 Strong cash reserve — indicates excellent liquidity and ability to meet short-term obligations.
Current Liabilities 150,647 Moderate short-term payables; manageable given cash balance.
Net Current Assets 80,392 Positive working capital — "healthy bloodstream" enabling day-to-day operational flow.
Fixed Assets (Tangible) 25,457 Investment in plant and machinery signals readiness for operational activity.
Net Assets / Shareholders Funds 99,485 Positive net worth — "healthy heart" showing that assets exceed liabilities.
Number of Employees 2 Small team consistent with a micro/small company profile.
Profit and Loss Reserves 99,385 Retained earnings suggest initial profitability or capital injection.
Creditors Breakdown Trade: 22,993; Tax & Social Security: 85,337; Other: 42,317 Tax liabilities are significant, likely reflecting VAT, payroll taxes, or corporation tax. Needs monitoring.

3. Diagnosis

The financial "vitals" of GREEN LIGHT PRODUCE SOLUTIONS LIMITED reveal a business with a strong liquidity position and a solid equity base after its first year. The company’s healthy cash flow ("good circulation") means it can comfortably cover its short-term liabilities, a critical factor in avoiding financial distress.

The tangible fixed assets investment indicates the company is equipped for its wholesale fruit and vegetable business (SIC 46310). The directors' decision to file under the small companies regime and exemption from audit is typical for a company of this size and age, but it also means less detailed external scrutiny of financial statements, so internal controls must be robust.

The high tax and social security creditor balance needs attention to ensure timely payment and avoid penalties, which could signal "symptoms of distress" if left unmanaged.

Overall, the company is in a stable early stage "healthy" condition but must maintain tight control over tax liabilities and build operational profitability to sustain and improve its financial health.


4. Recommendations

  • Maintain Strong Cash Management: Continue monitoring cash flows rigorously to ensure liquidity remains robust, especially as the company grows.
  • Manage Tax and Social Security Liabilities: Develop a detailed plan to manage and pay tax liabilities on time to avoid penalties or interest charges.
  • Build Profitability: Focus on revenue growth and cost control to convert retained earnings into positive net profit and strengthen financial reserves.
  • Review Working Capital Regularly: As the business expands, ensure working capital stays positive to avoid cash flow bottlenecks.
  • Consider Financial Forecasting and Budgeting: Implement regular financial forecasting to anticipate future capital requirements or potential liquidity issues.
  • Governance and Compliance: Maintain compliance with filing deadlines and consider periodic internal reviews or audits, even if not legally required, to identify risks early.
  • Asset Utilization: Monitor the use and depreciation of fixed assets to ensure they contribute effectively to revenue generation.


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