Company Number: 13918055

Analysis Date: 2025-07-29 20:35 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Greg Farmer Limited is a very young, small private company operating in the repair and maintenance of transport equipment sector. The company shows positive net asset growth and working capital improvements in its latest accounts. However, given the company’s short trading history (incorporated 2022) and modest scale, cautious credit approval is recommended, contingent on monitoring ongoing cash flow and debtor collections. The single director and sole owner structure concentrates control risk but management appears stable. The absence of long-term borrowings limits leverage risk.

2. Financial Strength:

• Net assets improved from £1,069 at 2024 year end to £2,924 at 2025 year end, indicating an increase in retained earnings and equity buildup.
• Fixed assets are minimal (£854), consistent with a service-based business model and limiting capital expenditure risks.
• The company remains a micro-entity with low balance sheet totals, and no long-term liabilities reported, which reduces solvency risk.
• The shareholder funds fully cover net assets, showing no external equity dilution or accumulated deficits.

3. Cash Flow Assessment:

• Current assets increased to £15,044 with cash balances rising to £5,537, improving liquidity compared to prior year.
• Debtors increased to £9,507 but remain manageable relative to current liabilities of £12,974, resulting in positive net current assets of £2,070.
• The working capital position has strengthened from £1,069 to £2,070, reflecting better short-term financial stability.
• The company’s cash buffer appears sufficient to meet near-term obligations, but creditor balances have also increased, notably corporation tax (£3,050), which should be monitored.

4. Monitoring Points:

• Debtor aging and collection efficiency to ensure timely cash inflows.
• Cash flow forecasts to confirm liquidity is maintained as the company grows.
• Payment of corporation tax and other creditors to avoid enforcement actions.
• Continued profit generation to support equity growth and mitigate risk from limited asset base.
• Any changes in ownership or directorship structure that could affect governance or credit risk.