GREENSTREAM MICROSYSTEMS LTD

Executive Summary

Greenstream Microsystems Ltd is a newly established micro-entity with a positive but modest financial base and limited operational history. While current liquidity is adequate for its scale, the absence of profit and detailed cash flow data suggests cautious credit exposure with conditions to mitigate risk. Ongoing monitoring of financial performance and regulatory compliance will be essential to reassess creditworthiness as the company develops.

GREENSTREAM MICROSYSTEMS LTD - Analysis Report

Company Number: 14684266

Analysis Date: 2025-07-29 14:56 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Greenstream Microsystems Ltd is a recently incorporated micro-entity with limited operating history, which restricts the depth of credit assessment. The company shows a modest net current asset position (£7,181) and no audit requirement due to size. The director has demonstrated financial stewardship by repaying advances, resulting in a small director creditor balance. However, absence of profit and cash flow details, and limited trading history, necessitate cautious credit extension with monitoring and possibly requiring personal guarantees or collateral if credit facilities are granted.

2. Financial Strength:
   The balance sheet reflects a small but positive net asset base of £7,181, comprised solely of current assets (£29,274) less current liabilities (£22,093). There are no fixed assets reported. Shareholders’ funds equal net assets, indicating no external debt. The company’s micro-entity status and minimal employee count (1) suggest a lean operation. The financial position is fragile given limited capital and lack of tangible assets, posing vulnerability to unexpected expenses or revenue shortfalls.

3. Cash Flow Assessment:
   Current assets mainly consist of cash or equivalents and receivables, while current liabilities are relatively high for the size of the business, leaving a narrow working capital margin. The net current assets of £7,181 suggest some short-term liquidity cushion but not substantial. The repayment of director advances indicates some cash management discipline. Without a profit and loss account or cash flow statement, it is not possible to fully assess operating cash inflows or outflows, which represents a risk for credit underwriting.

4. Monitoring Points:

• Timely filing of next accounts and confirmation statements to maintain regulatory compliance.
• Trends in working capital metrics and liquidity ratios in future filings.
• Profitability development and cash flow generation as the business matures.
• Changes in director advances or related party transactions.
• Any material increases in current liabilities or deterioration in net assets.
• Business growth indicators given the engineering consultancy sector’s cyclicality.