GREENWAKE LIMITED

Executive Summary

Greenwake Limited is an early-stage micro-entity with a negative net asset position and working capital deficit, reflecting limited financial strength and liquidity. The company currently lacks demonstrated ability to meet its short-term obligations and does not present a suitable credit risk for lending without further financial support or collateral. Ongoing monitoring of financial progress and liquidity improvements is essential before reconsidering credit exposure.

GREENWAKE LIMITED - Analysis Report

Company Number: 15219878

Analysis Date: 2025-07-29 13:22 UTC

1. Credit Opinion: DECLINE
   Greenwake Limited presents a weak credit profile at this early stage. The company has been operational for just over one year and reports net liabilities of £1,795, indicating negative equity. Current liabilities exceed current assets by a similar amount, reflecting a working capital deficit. This suggests insufficient short-term liquidity and potential difficulty in meeting immediate obligations. Moreover, as a micro-entity with minimal operational history and only one employee (the director), the company lacks demonstrated financial resilience or stable cash flows. The absence of audit and limited financial disclosures add to the uncertainty. Given these factors, the company does not currently exhibit the financial strength or creditworthiness to support lending or credit extension without substantial additional guarantees or collateral.

2. Financial Strength:
   The balance sheet shows net liabilities of £1,795 and negative working capital, with current liabilities of £2,195 outstripping current assets of just £400. No fixed assets or long-term assets are reported, implying limited tangible security. Shareholders’ funds are negative, reflecting accumulated losses or initial startup costs exceeding contributed capital. This weak equity base is typical for a startup micro-entity, but it signals a fragile capital structure potentially vulnerable to creditor pressure if cash flow problems arise.

3. Cash Flow Assessment:
   The company’s net current liabilities position indicates constrained liquidity. With current assets primarily composed of cash or equivalents at a low level (£400), and liabilities due within one year at £2,195, there is a material shortfall in readily available funds to cover immediate debts. This suggests potential reliance on the director’s financial support or external funding to meet working capital requirements. No information on turnover, receivables, or payables cycles is provided, limiting a fuller assessment of operational cash flow generation.

4. Monitoring Points:

• Track subsequent filing of accounts and confirmation statements to assess ongoing compliance and updated financial position.
• Monitor any significant changes in capital injection or director loans that may improve liquidity.
• Watch for improvements in working capital ratios and net assets as evidence of business growth or operational stabilization.
• Review director conduct and any related party transactions given sole control by one individual.
• Assess trading performance and cash flow forecasts once available to evaluate viability and repayment capacity.