Company Number: SC741835

Analysis Date: 2025-07-20 17:17 UTC

1. Credit Opinion: APPROVE

Grieve Electrical Ltd is a newly established private limited company incorporated in August 2022, operating in the electrical installation sector. The company’s first set of accounts for the year ended August 2023 shows a solid net asset position and positive working capital, indicating an initial stable financial footing. Given the absence of overdue filings, no insolvency status, and a modest but positive equity base supported by retained earnings, the company demonstrates sufficient capability to meet short-term liabilities and has a foundation for servicing credit facilities. However, being in the early stage of operations, ongoing monitoring is advisable.

2. Financial Strength:

• Fixed assets net book value stand at £30,400, reflecting investment in plant and machinery and motor vehicles, suggesting operational capacity.
• Current assets of £16,565, predominantly cash (£14,115), exceed current liabilities of £4,755, resulting in net current assets (working capital) of £11,810.
• Shareholders’ funds total £42,210, largely composed of profit and loss reserves (£42,110), indicating the company has retained earnings from its initial trading period.
• The balance sheet is clean with no long-term liabilities or overdrafts noted, reducing financial risk.
• The modest share capital of £100 is typical for a small private company.

3. Cash Flow Assessment:

• Cash on hand (£14,115) covers current liabilities comfortably, showing good liquidity.
• Trade debtors are low (£2,450), reducing risk of collection delays.
• Current liabilities include a director’s loan account (£1,406), corporation tax (£2,749), and accruals (£600), all manageable within current cash resources.
• Positive net current assets reflect healthy working capital management.
• No audit requirement and exemption under small companies regime suggests limited complexity but also less external assurance.

4. Monitoring Points:

• As a start-up company, monitor revenue growth and profitability trends in subsequent accounts to confirm business viability.
• Watch cash flow consistency, especially managing corporation tax liabilities and director’s loan repayments.
• Observe debtor days and creditor payment terms to ensure liquidity remains strong.
• Review any expansion in fixed assets or borrowing to assess impact on financial leverage.
• Monitor compliance with filing deadlines and any changes in director or ownership structure.