GRIEVE ELECTRICAL LTD

Executive Summary

Grieve Electrical Ltd shows a sound initial financial position with positive working capital and net assets from its first trading year, supporting its ability to meet short-term obligations. The company's liquidity is strong with cash exceeding current liabilities. Approval for credit facilities is recommended, with ongoing monitoring focused on growth, cash flow stability, and tax obligations given its early stage of operations.

GRIEVE ELECTRICAL LTD - Analysis Report

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.