GREENASH INVESTMENTS LTD

Executive Summary

Greenash Investments Ltd, a newly incorporated holding company, exhibits a high liquidity risk due to a large negative working capital position. While regulatory compliance and positive equity provide some reassurance, the company's ability to meet short-term obligations is questionable without further insight into the liquidity of its investments and the nature of its liabilities. Careful due diligence on asset liquidity and liability composition is advised before considering investment.

GREENASH INVESTMENTS LTD - Analysis Report

Company Number: 15663468

Analysis Date: 2025-07-29 19:11 UTC

1. Risk Rating: HIGH
   Justification: The company shows a substantial imbalance between current liabilities (£715,000) and current assets (£30,930), resulting in a large negative net working capital position (-£684,070). This significant liquidity deficiency early in its operating history raises serious concerns about its ability to meet short-term obligations.

2. Key Concerns:

• Severe liquidity mismatch: Current liabilities greatly exceed current assets, indicating potential cash flow problems.
• Concentration of investment value: Fixed assets are almost entirely investments (£837,495) with no impairment but lack diversification and may be illiquid.
• Limited operational history: Incorporated in April 2024 with only one financial period reported, limiting assessment of ongoing operational stability and profitability.

3. Positive Indicators:

• Compliance with filing requirements: Accounts and confirmation statement are filed on time, indicating regulatory compliance and governance discipline.
• Shareholders’ funds positive: Despite liquidity concerns, shareholders’ funds stand at £153,425, supported by share premium and retained profits.
• Directors’ transparency: Directors’ report and accounting policies are detailed, showing adherence to relevant standards and disclosure norms.

4. Due Diligence Notes:

• Investigate nature and liquidity of the £837,495 investments to assess if they can be readily converted to cash to cover liabilities.
• Review the source and timing of the £715,000 current liabilities to understand if these are short-term borrowings, trade creditors, or related party debts.
• Obtain cash flow forecasts and business plan to evaluate how the company intends to resolve the working capital deficit.
• Confirm any off-balance sheet liabilities or contingent exposures that may further impact financial stability.
• Assess directors’ backgrounds and any potential conflicts or related party transactions not disclosed.