GREENROCK INVESTMENT PROPERTIES LIMITED

Executive Summary

Greenrock Investment Properties Limited demonstrates significant financial weakness characterized by negative net assets, high leverage, and poor liquidity, relying heavily on parent company support to remain a going concern. The company’s asset base has diminished substantially, and working capital deficits raise concerns about short-term debt servicing capabilities. Credit approval is declined due to these risks, but ongoing monitoring of asset values, liabilities, and group support is essential.

GREENROCK INVESTMENT PROPERTIES LIMITED - Analysis Report

Company Number: 12764294

Analysis Date: 2025-07-29 19:35 UTC

1. Credit Opinion: DECLINE
   Greenrock Investment Properties Limited shows negative net assets (£-168,699 as of July 2024) and persistent net current liabilities (£-420,754), indicating balance sheet weakness and poor short-term liquidity. The company’s current liabilities exceed current assets by a significant margin, and the secured bank loans amount to £672,945 due after one year, showing a high leverage level relative to asset values. Despite being supported by a parent company, the company’s ability to service debt from operating cash flow is unclear, especially given the very low cash balance (£212). The declining investment property value and disposal activity (down from £1.84M to £925k) further suggest financial strain. Without stronger equity or improved cash flows, granting credit is risky.

2. Financial Strength:
   The company’s financial strength is weak. Net assets have deteriorated from a positive £4,368 in 2021 to a deficit of nearly £169k in 2024. The investment properties—a key asset—have been halved in value over the last year, indicating potential impairments or disposals. High gearing is evident with bank loans secured against these properties totaling £672,945, exceeding net assets by a wide margin. The shareholder funds show accumulated losses, reflecting ongoing operational or financing challenges. The company remains dependent on the parent group for support, which is an external credit risk factor.

3. Cash Flow Assessment:
   Liquidity is constrained. The company holds minimal cash (£212) and has debtors of £21,319, but current liabilities are very high at £672,945. Negative net current assets of £-420,754 highlight a working capital deficit, signaling difficulties in meeting short-term obligations without refinancing or further group support. The absence of an audit and limited disclosure on profit and loss restricts visibility on cash generation from operations. The directors’ statement indicates reliance on group support to continue as a going concern, underscoring weak standalone cash flow.

4. Monitoring Points:

• Track property valuations and disposals closely as these materially impact asset backing and loan security.
• Monitor changes in current liabilities and any refinancing or repayment of bank loans.
• Assess cash flow from operations when profit and loss accounts become available.
• Watch for continued parental support and any changes in group structure or financial health.
• Observe any changes in director appointments or credit ratings.