GRIFFIN INTL. LTD

Executive Summary

Griffin Intl. Ltd shows a solid foundational financial position for a startup with positive net assets and strong cash holdings, but also symptoms of tight liquidity and deferred tax obligations that warrant careful management. With focused efforts on improving working capital, managing tax liabilities, and growing revenues, the company can strengthen its financial health and ensure sustainable growth.

GRIFFIN INTL. LTD - Analysis Report

Company Number: 14632461

Analysis Date: 2025-07-20 15:31 UTC

Financial Health Assessment: GRIFFIN INTL. LTD (to 31 March 2024)

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1. Financial Health Score: B-

Explanation:
Griffin Intl. Ltd is a very young private limited company (incorporated Feb 2023) operating in financial management. The financial statements reveal a fledgling business with a net asset base and positive working capital, but also signs of early-stage financial strain indicated by provisions for deferred tax and relatively tight liquidity. The company’s financial "vital signs" suggest cautious optimism but also highlight areas requiring close monitoring to maintain and improve financial health.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	33,347	Healthy level of liquid assets, predominantly cash, indicating reasonable liquidity.
Cash at Bank	33,257	Very close to total current assets, showing strong cash position—good “circulatory system”.
Debtors (Trade Receivables)	90	Negligible trade receivables, indicating limited credit risk or very early trading history.
Current Liabilities	32,863	Near parity with current assets, indicating tight working capital.
Net Current Assets	484	Minimal net working capital, symptomatic of a fragile short-term liquidity “pulse”.
Fixed Assets (Tangible)	37,558	Investment in plant and equipment shows asset foundation for operations.
Provisions for Liabilities (Deferred Tax)	8,191	A deferred tax liability indicates anticipated future tax payments, a “latent load”.
Net Assets	29,851	Positive net assets indicate overall solvency and shareholder equity strength.
Called-up Share Capital	1	Minimal share capital, typical for a new company.
Retained Earnings	29,850	Accumulated profits or reserves coming primarily from initial capital or undistributed profits.

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3. Diagnosis: Financial Health and Underlying Symptoms

• Liquidity: The company has a healthy cash reserve relative to its immediate liabilities, suggesting a stable “cash flow heartbeat.” However, the near-balance of current assets and current liabilities implies limited buffer for unexpected expenses or downturns, which is common for a startup.

• Asset Base: A tangible fixed asset base of £37,558 reflects investment in operational capacity (likely equipment or office assets). This “structural skeleton” provides a foundation but also requires maintenance and potential depreciation, which the accounts confirm.

• Deferred Tax Provision: The deferred tax liability of £8,191 is a significant “hidden burden” that reduces net assets and signals future tax outflows. This may arise from timing differences on capital allowances or other accounting treatments, common in early-stage companies investing in fixed assets.

• Working Capital: The net current assets figure is positive but minimal, indicating the business is walking a tightrope with short-term finances. This fragile “pulse” means cash management must be vigilant.

• Capital Structure: Share capital is minimal, with most equity represented by retained earnings or reserves. This is typical in a new business where initial capital injections are modest.

• Operating Performance: The absence of an income statement (due to small company exemption) limits assessment of profitability or revenue trends. However, the low debtor figure and cash position imply limited trading history or early-stage revenue generation.

• Directors and Control: The company is controlled by two directors with significant shareholdings (75-100%), suggesting concentrated control which can be efficient but also a risk if lacking governance diversity.

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4. Recommendations: Steps to Improve Financial Wellness

• Enhance Working Capital Cushion: Aim to increase net current assets beyond the minimal £484 by improving cash flow from operations or negotiating longer payment terms with creditors. This will build a stronger liquidity “immune system” against shocks.

• Monitor Deferred Tax Impact: Engage with tax advisors to manage deferred tax liabilities proactively, possibly through tax planning and timing of asset purchases or disposals to reduce future tax burdens.

• Develop Revenue Streams: Focus on increasing turnover and reducing reliance on shareholder loans or capital injections to strengthen operational cash flow and reduce financial “symptoms” of dependency.

• Maintain Rigorous Cash Flow Management: Given the tight working capital, implement detailed cash flow forecasting and control measures to avoid liquidity crises.

• Consider Capital Injection or Financing: If growth plans require more investment, consider raising additional equity or short-term finance to bolster the asset base and working capital.

• Governance and Compliance: Continue timely filing of accounts and confirmation statements to maintain good standing and avoid “penalties” which can exacerbate financial strain.

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