Company Number: 12718262

Analysis Date: 2025-07-29 19:01 UTC

1. Credit Opinion: APPROVE
   Grewals Consulting Ltd demonstrates a stable and improving financial position with consistent net asset values around £220k and strong working capital. The company is micro-sized with minimal liabilities relative to current assets, indicating good short-term liquidity and the ability to meet debt obligations. No overdue filings or liquidation concerns are present, and the director has maintained control with clear oversight. The business appears financially sound to service a reasonable credit facility, although limited scale and a single employee suggest cautious facility sizing.

2. Financial Strength:
   The balance sheet shows net assets of £221k as of July 2024, stable over the last three years, indicating a solid equity base. Fixed assets decreased slightly from £62k to £48k, while current assets grew marginally to £366k. Current liabilities have decreased from £175k to £148k, improving net current assets to £218k. The company holds a healthy working capital position, with current assets comfortably covering short-term liabilities, suggesting financial resilience. The capital structure is straightforward with minimal share capital (£3) but strong retained earnings (shareholders funds).

3. Cash Flow Assessment:
   The current ratio (Current Assets / Current Liabilities) is approximately 2.48, indicating strong liquidity. Net current assets have improved by ~£37k year-on-year, reflecting good cash flow management and working capital control. The business employs just one employee, likely limiting fixed overheads. Although detailed cash flow statements are not provided, the balance sheet trends suggest sufficient cash or near-cash assets to meet short-term obligations without stress.

4. Monitoring Points:

• Maintain vigilance on current liabilities and accruals, which increased to £45k in 2024 from £22k in 2023, to avoid liquidity strain.
• Monitor any changes in operational scale or staff numbers, as growth could impact cash flow needs.
• Review any deviations in fixed asset holdings reflecting capital expenditure or disposals.
• Watch for timely account and confirmation statement filings to avoid compliance risks.
• Keep track of director and PSC changes or any governance issues, though none are currently noted.