Company Number: 14367047

Analysis Date: 2025-07-29 12:42 UTC

1. Credit Opinion: CONDITIONAL APPROVAL. Greenscope Solutions Ltd presents as a micro-entity with a very small scale of operations and a sole director/shareholder. The company remains active and compliant with filing deadlines, which supports creditworthiness. However, the recent decline in net assets and current assets, alongside the minimal asset base and no audit confirmation, suggests limited financial buffer and potential cash flow constraints. Lending or credit extension should be sized cautiously and may require additional security or guarantees given the small scale and limited financial history.

2. Financial Strength: The company’s balance sheet shows net assets of £12,666 as of 30 September 2024, down from £20,150 in the prior year, indicating a material reduction in equity within one year. Fixed assets are minimal (£3,186), and current assets have decreased significantly from £23,708 to £14,150. Current liabilities reduced from £6,875 to £3,625, but the net current assets halved from £21,146 to £10,525. The company holds no long-term liabilities, and shareholders’ funds equal net assets, which is typical for a micro private limited company. Overall, the financial strength is modest and declining, reflecting either operational losses or withdrawals.

3. Cash Flow Assessment: Current assets mainly represent short-term liquid resources, but the considerable drop year-on-year raises concerns about liquidity management. With net current assets at £10,525, the company retains a positive working capital position, indicating it can meet short-term obligations. The reduction in accrued income/prepayments and creditors suggests tighter cash flow or a reduction in business activity. Given the company only employs one person (the director) and operates in environmental consulting, cash flow variability may be high. There is no explicit cash flow statement, but the balance sheet movements imply constrained cash generation.

4. Monitoring Points:

• Monitor quarterly cash flow and working capital closely to detect any liquidity tightening.
• Watch for any further declines in net assets, which may indicate ongoing losses or capital erosion.
• Review director’s remuneration and related party transactions for potential impact on financial stability.
• Ensure timely filing of accounts and confirmation statements continues to maintain compliance.
• Assess any shifts in business activity or client base given industry volatility and company scale.