GREENHOUSE GRAPHICS HOLDINGS LIMITED

Executive Summary

Greenhouse Graphics Holdings Limited demonstrates improving net asset growth and equity accumulation but faces liquidity challenges due to persistent working capital deficits and low cash relative to current liabilities. Credit exposure should be cautiously considered with close attention to cash flow and creditor management. The company’s investment base and retained earnings provide some financial strength, but short-term cash flow risks warrant conditional approval and ongoing monitoring.

GREENHOUSE GRAPHICS HOLDINGS LIMITED - Analysis Report

Company Number: 12751064

Analysis Date: 2025-07-29 19:01 UTC

1. Credit Opinion:
   CONDITIONAL APPROVAL. Greenhouse Graphics Holdings Limited shows continued growth in net assets and shareholders' funds, indicating improving financial stability. However, the company consistently reports significant negative net current assets (working capital deficits) and low cash balances relative to current liabilities, which raises liquidity concerns. The company’s ability to meet short-term obligations depends heavily on managing creditor terms or accessing additional short-term funding. The absence of employees suggests limited operational scale or outsourcing, which may reduce fixed costs but also limits business resilience. Close monitoring of cash flow and creditor management is advised before extending credit.

2. Financial Strength:
   The company’s balance sheet shows net assets increasing from £24,100 in 2020 to £183,031 in 2025, reflecting retained earnings growth and capital accumulation. Fixed assets consist mainly of investments in subsidiaries valued at £496,648, indicating an asset base focused on group undertakings rather than operational fixed assets. However, the company carries a sizeable long-term liability (£269,650 in 2025, reduced from £330,150 in 2024) alongside current liabilities (£48,000 in 2025 down from £18,000 in 2024). The increase in current liabilities may indicate growing short-term obligations. The equity base is modest with a £100 share capital but healthy retained earnings.

3. Cash Flow Assessment:
   Cash on hand remains low (£4,033 in 2025) relative to current liabilities (£48,000), resulting in negative net current assets (-£43,967). This indicates a working capital deficit and potential cash flow pressure to cover short-term debts. The company must rely on either rolling over payables, additional financing, or cash generated from subsidiaries to maintain liquidity. The lack of employees suggests minimal payroll outgoings, possibly improving cash conservation. However, the negative working capital trend is a risk factor, necessitating close liquidity management.

4. Monitoring Points:

• Liquidity ratios and cash flow from subsidiaries to ensure coverage of current liabilities.
• Changes in creditor terms or any late payments as potential red flags.
• Developments in investments and returns from subsidiaries to assess asset quality and earnings support.
• Any changes in long-term debt levels and maturity profiles to evaluate refinancing risk.
• Directors’ and shareholders’ commitment to supporting working capital if required.