GREENACRE PROPERTY DEVELOPMENTS LIMITED

Executive Summary

Greenacre Property Developments Limited is in its infancy with a positive but modest net asset position and positive working capital, indicating initial financial stability. However, very low operational activity and limited assets suggest it is still in the setup phase. Careful cash flow management and planned operational growth are essential to improve its financial health moving forward.

GREENACRE PROPERTY DEVELOPMENTS LIMITED - Analysis Report

Company Number: 15025159

Analysis Date: 2025-07-29 13:05 UTC

Financial Health Assessment for GREENACRE PROPERTY DEVELOPMENTS LIMITED

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1. Financial Health Score: C

Explanation:
The company is very young (incorporated in 2023) and currently classified as a micro-entity with limited financial data. The available figures reflect a modest net asset position and positive net working capital, which are good signs. However, the very low current assets and relatively high current liabilities, combined with no reported employees or turnover, suggest the company is in its initial setup phase or has limited trading activity. The balance sheet shows early-stage "symptoms" rather than established "vital signs" of financial health.

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2. Key Vital Signs

Metric	Value	Interpretation
Current Assets	£311	Very low liquid assets; minimal cash or receivables indicating limited operational activity.
Current Liabilities	£7,923 (negative)	Short-term obligations, possibly creditors or short-term debt; relatively high compared to assets.
Net Current Assets (Working Capital)	£8,234 (positive)	Positive working capital is a healthy sign, showing current assets exceed current liabilities.
Total Assets Less Current Liabilities	£8,234	Net asset base indicates some shareholder equity and cushion against liabilities.
Shareholders' Funds	£8,234	Reflects owners’ equity — positive but small, typical for a newly incorporated company.
Employees	Nil	No staff yet; suggests company is in early development or preparatory phase.
Audit Status	Exempt	Micro-entity exemption used; typical for small startup companies.

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3. Diagnosis

The company exhibits the classic "early development" financial profile: modest net assets, positive working capital, but very limited operational scale. The positive net current assets (working capital) represent a "healthy cash flow cushion," meaning it can cover short-term liabilities. However, the very low current assets and absence of employees or turnover indicate the company is likely in the setup or pre-trading phase.

The presence of current liabilities exceeding current assets on face value (before netting) could be a "symptom of distress" if cash inflows do not materialize soon, but the positive net working capital suggests these may include non-cash or timing-related items (e.g., shareholder loans or deferred payments).

No audit requirement and micro-entity filing indicate the company is keeping compliance simple, but also that detailed financial insight is limited.

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4. Recommendations

• Build Operational Activity: Initiate revenue-generating projects to move beyond initial setup phase, as indicated by zero employees and minimal assets.
• Monitor Cash Flow Closely: Ensure that short-term liabilities can be met promptly to avoid liquidity stress; cash flow forecasting is essential.
• Increase Capital or Funding: Consider additional equity injections or financing to strengthen asset base and support growth plans.
• Establish Financial Controls: As the company grows, implement more detailed accounting and financial reporting to track performance and identify early warnings.
• Plan for Staffing: Hiring suitable staff or contractors will be necessary to scale operations and realize development projects.
• Review Liabilities: Clarify the nature of current liabilities and manage payment terms to maintain healthy working capital.

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