GRIFFIN RESIDENTIAL BLOCK MANAGEMENT LIMITED

Executive Summary

Griffin Residential Block Management Limited has experienced a significant decline in financial health over the last year, moving from positive net assets to substantial net liabilities and negative working capital. The company’s liquidity position is weak with increasing current liabilities and limited fixed assets, raising concerns about its ability to meet debt obligations. Given the financial stress and limited visibility on profitability, credit approval is not advised at this stage.

GRIFFIN RESIDENTIAL BLOCK MANAGEMENT LIMITED - Analysis Report

Company Number: 12758643

Analysis Date: 2025-07-29 19:01 UTC

1. Credit Opinion: DECLINE
   Griffin Residential Block Management Limited currently shows a significant deterioration in financial health. The company moved from positive net assets of £35k at 31 March 2023 to a net liability position of £145k at 31 March 2024. This sharp decline in net assets and worsening working capital position indicates financial stress and potential inability to meet short-term obligations without external support. The company's cash flow and liquidity are under pressure, reducing confidence in its ability to service new or existing credit facilities. Given these factors and the lack of audit or detailed income statement, credit approval is not recommended at this time.

2. Financial Strength
   The balance sheet reveals weak financial strength. Fixed assets are minimal (£1k), and current liabilities have doubled year-on-year from £115k to £229k, while current assets have only marginally increased from £79k to £83k. The net current liabilities of £146k (current assets less current liabilities) signify a working capital deficit, impairing operational flexibility. Shareholders’ funds have turned sharply negative, reflecting accumulated losses or increased liabilities. The company’s micro-entity status and small share capital (£10) further limit its financial cushion.

3. Cash Flow Assessment
   The negative net current assets position and doubling of creditors due within one year raise concerns about the company’s liquidity. Without sufficient current assets or cash reserves, the company may struggle to meet short-term payables and operational expenses. The increase in average employees from 2 to 5 suggests higher overhead costs, potentially exacerbating cash flow strain. The absence of an income statement and audit limits visibility on profitability and cash generation, preventing a thorough cash flow evaluation.

4. Monitoring Points

• Monitor quarterly or interim financials for signs of improved liquidity or profitability.
• Watch for any late filings or further deterioration in working capital ratios.
• Keep track of director changes and any PSC updates that may impact governance or control.
• Assess any external funding or capital injections that could stabilize the balance sheet.
• Observe industry conditions in real estate management fees for potential impact on revenue.