GREYHOUND ENGINEERING MANAGEMENT SERVICES LTD

Executive Summary

Greyhound Engineering Management Services Ltd exhibits a strong and improving financial position, characterized by increasing liquidity and net assets, reflecting sound financial management at a micro-entity scale. The company is financially healthy with no signs of distress, but its small size and limited capital base suggest cautious growth and careful cash flow monitoring are prudent to sustain long-term wellness.

GREYHOUND ENGINEERING MANAGEMENT SERVICES LTD - Analysis Report

Company Number: 12754383

Analysis Date: 2025-07-29 17:26 UTC

Financial Health Assessment for Greyhound Engineering Management Services Ltd

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1. Financial Health Score: B+

Explanation:
The company demonstrates a solid and steadily improving financial position over the five-year history, with increasing net assets and healthy working capital. Being a micro-entity, it shows prudent financial management with no signs of distress or liquidity problems. However, the relatively small scale and limited capital base suggest a need for cautious growth and monitoring.

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2. Key Vital Signs:

Metric	2024 (£)	2023 (£)	Interpretation
Current Assets	36,333	26,034	Growing cash and receivables indicate improving liquidity ("healthy cash flow").
Current Liabilities	13,267	10,226	Manageable short-term obligations, stable relative to assets.
Net Current Assets	23,066	15,808	Positive working capital, suggesting ability to cover short-term debts comfortably.
Net Assets (Shareholders’ Funds)	22,472	15,244	Increasing equity signals retained profits and financial strengthening.
Share Capital	125	125	Minimal capital invested, typical for micro-entities, but limits buffer against shocks.
Average Employees	1	1	Very small workforce, indicating a lean operation.

Interpretation:

• Liquidity: The company maintains a strong liquidity position with net current assets nearly doubling from 2023 to 2024, indicating a "healthy cash flow" and ability to meet short-term obligations without strain.
• Solvency: Net assets increasing steadily from £2,246 in 2020 to £22,472 in 2024 show a firm "balance sheet strength" without signs of distress or erosion of equity.
• Scale: Operating as a micro-entity with one employee and minimal share capital suggests limited operational scale and potential vulnerability to market fluctuations or unexpected costs.
• Profitability: While profit and loss details are not provided, the growth in net assets implies retained earnings and underlying profitability.

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3. Diagnosis:

Overall Financial Condition:
Greyhound Engineering Management Services Ltd appears to be in good health financially. The "vital signs" show increasing liquidity and solvency, with net current assets and shareholders’ funds growing steadily year on year. The company’s balance sheet is stable, with no red flags such as negative working capital or erosion of equity. The small size and micro-entity classification mean the business is likely a niche or specialized operation, with lean staffing and low capital base.

There are no symptoms of financial distress such as overdue filings, increasing liabilities outstripping assets, or cash flow problems. The accounts are filed timely, and the company is compliant with statutory requirements. The absence of large fixed assets or significant liabilities reduces risk but also indicates limited growth investment or expansion.

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4. Recommendations:

To maintain and enhance financial wellness, the company should consider:

• Capital Injection: While the current share capital is minimal (£125), increasing capital could provide a stronger buffer against business risks and support future growth initiatives.
• Profit & Loss Monitoring: Regularly review profitability metrics to ensure that retained earnings continue to grow and support liquidity and solvency. If profitability data is not tracked internally, implement basic financial controls.
• Cash Flow Management: Continue monitoring working capital closely, especially as the company grows, to avoid liquidity crunches ("symptoms of cash flow stress").
• Growth Planning: Explore opportunities to scale operations prudently, perhaps by investing in fixed assets or hiring additional staff, but only with clear cash flow projections and risk assessment.
• Risk Mitigation: Given the small scale, maintain a contingency reserve and consider insurance against operational risks.
• Compliance Vigilance: Maintain timely filings and statutory compliance to avoid penalties or reputational damage.

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