GREEN ORCHARD PROPERTIES LIMITED

Executive Summary

Green Orchard Properties Limited exhibits a weak financial position characterized by negative net assets, high leverage, and minimal liquidity. The company’s ability to service debt relies heavily on director support, with no evidence of operational cash flow generation. Given these factors, credit approval is not recommended without substantial additional security or guarantees.

GREEN ORCHARD PROPERTIES LIMITED - Analysis Report

Company Number: 13634770

Analysis Date: 2025-07-20 14:57 UTC

1. Credit Opinion: DECLINE
   Green Orchard Properties Limited shows significant negative net assets (£-37,309 as of 30/09/2024) and a heavy long-term creditor position (£1.46m). The company is thinly capitalised with minimal working capital (£11,452 net current assets), indicating limited liquidity. There is no evidence of profitability or cash generation, as turnover and P&L details are not provided, and the company employs no staff. The reliance on director support for going concern raises concerns about sustainability and repayment ability. Overall, the financial profile suggests insufficient financial strength and repayment capacity for new credit facilities.

2. Financial Strength:
   The balance sheet is dominated by a fixed asset (freehold property) valued at £1.41m. However, this is almost fully leveraged by creditors falling due after more than one year (£1.46m), resulting in negative net equity. Current assets are negligible (£11,965) and just cover current liabilities (£513), indicating tight liquidity. The company’s capital base is weak, and the negative reserves reflect accumulated losses or funding structure issues. No depreciation is charged on the property, which may overstate asset value but is consistent with freehold land accounting. The business classification as a micro entity means limited disclosure but does not mask the weak equity position.

3. Cash Flow Assessment:
   Current assets are primarily cash and/or receivables but are very low, and the company reported no employees or operating activity. Minimal net current assets suggest limited working capital to cover short-term obligations. The large long-term creditor balance points to significant debt or loans, implying cash outflows for servicing interest or principal. The directors’ note on ongoing support indicates reliance on external funding rather than internal cash generation. Without clear turnover or profit data, the cash flow position appears fragile, and liquidity risk is elevated.

4. Monitoring Points:

• Track changes in net assets and equity to detect improvement or further deterioration.
• Monitor current asset composition and liquidity ratios to assess short-term payment ability.
• Review any director or related party loans and their terms, including repayment schedules.
• Watch for any overdue filings or changes in company status impacting creditworthiness.
• Assess business activity and turnover trends once available to evaluate operational viability.
• Keep an eye on the property valuation and any impairment risk that could affect collateral value.