Company Number: 13101264

Analysis Date: 2025-07-20 12:23 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Green Planet Heating Solutions Ltd demonstrates positive net assets and working capital, indicating an ability to meet short-term liabilities. However, there is a noticeable decline in total net assets and current assets in 2023 compared to prior years, suggesting a downward financial trend. Given the company’s small scale and limited financial disclosure typical of micro-entities, approval is recommended subject to ongoing monitoring of liquidity and profitability metrics to ensure the decline does not continue.

2. Financial Strength:
   The balance sheet shows net assets of £16,599 as of 31 December 2023, down from £28,794 in 2022. Fixed assets decreased from £8,002 to £4,002, and current assets reduced significantly from £28,806 to £16,472. Despite this, net current assets remain positive at £12,597, providing a buffer against short-term obligations. Shareholders’ funds mirror net assets, confirming equity backing. The company is small with only two employees, which limits scale but also limits fixed overhead.

3. Cash Flow Assessment:
   Current liabilities are modest at £3,875, comfortably covered by current assets of £16,472, resulting in a strong working capital position. This suggests adequate liquidity to service debts and operational expenses in the near term. However, the reduction in current assets year-on-year warrants attention as it could indicate tightening cash flow or a buildup of receivables/inventory without corresponding cash inflows.

4. Monitoring Points:

• Track future annual accounts for trends in net assets and working capital to detect further erosion.
• Monitor cash conversion cycle closely to ensure receivables and stock levels do not impair liquidity.
• Evaluate profitability and cash flow statements (when available) to confirm operational cash generation.
• Keep abreast of any director changes, overdue filings, or regulatory issues that could impact credit risk.