GRIFFINS AUCTIONEERS AND VALUERS LTD

Executive Summary

Griffins Auctioneers and Valuers Ltd exhibits significant financial weakness with growing net liabilities and negative working capital, raising serious doubts about its ability to meet debt obligations. The company’s liquidity position and solvency are concerning, and without clear evidence of financial recovery or external support, credit facilities are not recommended at this time. Close monitoring of liquidity improvements and capital structure is essential should the credit position be reconsidered in the future.

GRIFFINS AUCTIONEERS AND VALUERS LTD - Analysis Report

Company Number: 14032269

Analysis Date: 2025-07-20 16:57 UTC

1. Credit Opinion: DECLINE
   Griffins Auctioneers and Valuers Ltd shows significant financial distress despite being an active private limited company. The latest accounts reveal net liabilities of approximately £159k, worsening from prior years, indicating erosion of shareholder equity and financial instability. The persistent negative working capital (£165k deficit) highlights liquidity issues, suggesting difficulties in meeting short-term obligations. Given the company’s short trading history (incorporated 2022) and ongoing losses, the risk of insolvency is elevated. Without evidence of a turnaround plan or external support, extending credit would be imprudent.

2. Financial Strength:
   The company’s balance sheet reflects weak financial health. Fixed assets are minimal (£9k), and current assets have halved from £103k to £48k year-on-year, while current liabilities have increased slightly to £218k. This negative net current asset position and overall negative net assets imply that liabilities exceed assets, undermining solvency. The absence of positive retained earnings or reserves reinforces the fragile equity base. The company’s micro-entity status limits disclosure but does not mask the underlying financial weakness.

3. Cash Flow Assessment:
   Working capital is deeply negative, indicating cash flow pressures. The company likely relies on external funding or shareholder support to meet operational costs and creditor payments. The reduction in current assets and increased current liabilities suggest tightening liquidity. Without cash flow statements, the exact cash position is unknown, but the balance sheet signals potential difficulties in honoring short-term debts or obtaining trade credit. This raises concerns about ongoing business resilience.

4. Monitoring Points:

• Improvement in net current assets and positive working capital generation.
• Reduction in current liabilities and stabilization or growth of current assets, particularly cash or receivables.
• Evidence of profitability or capital injections to rebuild shareholder funds.
• Timely filing of accounts and confirmation statements to monitor compliance and business continuity.
• Management actions addressing financial deficits and liquidity constraints.