Company Number: 15055717

Analysis Date: 2025-07-29 18:14 UTC

1. Credit Opinion: APPROVE (subject to monitoring) Green Wave Procurement Ltd is a recently incorporated micro-entity operating in the management consultancy sector. Its first financial statements show a solid net asset position (£85k) and positive working capital (£84k) indicating initial financial stability. There are no overdue filings or director disqualifications. The company’s modest scale and limited operating history warrant a cautious credit limit and periodic review, but current data supports credit approval for routine commercial facilities.

2. Financial Strength: The balance sheet shows minimal fixed assets (£899) but substantial current assets (£151k) mostly likely cash or receivables, which exceed current liabilities (£67k) by a healthy margin. Shareholders’ funds equal net assets at £85k, reflecting no long-term debt and a clean equity base. The company has retained earnings or reserves consistent with a startup in early growth phase. Overall, financial strength appears sound for its size and age.

3. Cash Flow Assessment: Current assets significantly outstrip current liabilities, yielding positive net current assets of £84k, a good indicator of liquidity and working capital adequacy. The absence of long-term borrowings reduces financial risk. Director advances are minimal and mostly repaid, suggesting no material reliance on insider funding. However, absence of detailed cash flow statements limits deeper cash flow scrutiny. Monitoring actual cash inflows/outflows will be important as operations grow.

4. Monitoring Points:

• Track revenue growth and profitability trends in subsequent accounts to assess business viability and debt servicing capacity.
• Monitor working capital cycles, particularly debtor collection and creditor payment terms.
• Watch for changes in director advances or related party transactions that may affect liquidity.
• Keep an eye on any changes in ownership or management that may impact governance or credit risk.
• Ensure timely filing of future accounts and confirmation statements to avoid regulatory penalties.