GREENFIELD GARAGE LTD

Executive Summary

Greenfield Garage Ltd is a micro private company operating in motor vehicle maintenance with a modest equity base and some short-term liquidity concerns. While it maintains statutory compliance and shows improved net assets, the negative working capital and introduction of long-term creditors warrant closer examination. Overall, the company's financial position suggests medium risk, with further due diligence recommended to confirm operational sustainability and cash flow adequacy.

GREENFIELD GARAGE LTD - Analysis Report

Company Number: 14257406

Analysis Date: 2025-07-20 16:40 UTC

1. Risk Rating: MEDIUM
   Greenfield Garage Ltd shows a mixed financial position with some liquidity concerns but improving net assets. The company is relatively new (incorporated 2022) and operates in vehicle maintenance, a stable sector, but the current liabilities slightly exceed current assets as of the latest accounts, indicating a working capital deficit.

2. Key Concerns:

• Negative Net Current Assets: The 2024 accounts reveal net current liabilities of £3,203, indicating potential short-term liquidity pressure. Although improved from a larger deficit in 2023, this remains a risk for meeting immediate obligations.
• Long-Term Creditors Introduced: The 2024 accounts show £6,761 of creditors due after more than one year, suggesting some longer-term debt or obligations that could affect future cash flow.
• Small Scale and Limited Financial Transparency: As a micro-entity exempt from audit, detailed financial scrutiny is limited, reducing the visibility of operational risks and profitability trends.

3. Positive Indicators:

• Improved Net Assets: Shareholders’ funds more than doubled from £8,530 in 2023 to £18,362 in 2024, reflecting some capital injection or retained earnings growth, strengthening the equity base.
• Consistent Compliance: No overdue filings for accounts or confirmation statements; the company appears compliant with statutory requirements, which reduces regulatory risk.
• Stable Operational Base: The company maintains a small, steady workforce (3 employees) consistent with its micro-entity status, which may control overheads and support operational stability.

4. Due Diligence Notes:

• Review Cash Flow Statements: To better understand liquidity dynamics and whether the working capital deficit is transient or persistent.
• Examine Nature of Long-Term Creditors: Clarify the terms and security attached to the £6,761 long-term liabilities to assess solvency impact.
• Assess Profitability and Revenue Trends: Since only balance sheet data is provided, confirming income statement performance and customer base stability is important.
• Directors and PSC Information: Verify any director conduct records or significant control changes to assess governance risks.