Company Number: 14054039

Analysis Date: 2025-07-19 12:32 UTC

1. Credit Opinion: DECLINE

GREY VAPOUR LIMITED shows significant financial distress with persistent negative net assets and net current liabilities over the last two years. The company’s balance sheet reflects a weak financial position with liabilities exceeding current assets by a large margin, indicating insufficient liquidity and working capital to meet short-term obligations. The absence of employees and reliance on director loans to finance operations raises concerns about operational viability and sustainability. Given the ongoing losses and lack of clear profitability or cash flow generation, the company currently lacks the financial strength to service additional debt or credit without substantial improvement or capital injection.

2. Financial Strength:

• Net assets deteriorated from -£3,962 (2023) to -£4,531 (2024).
• Net current liabilities increased from -£6,082 to -£6,651, showing worsening working capital deficits.
• Fixed assets are minimal (£2,120) and unchanged, indicating no significant capital investment.
• Shareholders’ funds are negative, reflecting accumulated losses and undermining equity cushion.
• Debt is primarily director loans (£6,448), signaling internal financing rather than external creditworthiness.

3. Cash Flow Assessment:

• Cash balances are extremely low (£247 in 2024), insufficient to cover current liabilities.
• Net current liabilities exceed £6,600, indicating severe liquidity constraints.
• No employees suggest limited operational scale and potential cash burn.
• Ongoing reliance on director loans suggests insufficient cash inflows from trading activities.
• No positive cash flow from operations discernible in the accounts.

4. Monitoring Points:

• Track improvement or deterioration in net current assets and cash balances.
• Monitor any changes in director loans and external financing arrangements.
• Watch for any operational developments including staff hiring or revenue growth.
• Review subsequent filings for signs of profitability or capital injection.
• Assess director’s plans for turnaround or restructuring as disclosed in reports.