GRIMOIRE OF HORROR LTD

Executive Summary

Grimoire of Horror Ltd is in its first year of trading and currently shows a weak financial position with negative net assets and insufficient liquidity to cover liabilities. The company’s financial profile and cash flow position are not supportive of credit extension at this stage. Close monitoring of operational performance and balance sheet improvements is essential before reconsidering credit facilities.

GRIMOIRE OF HORROR LTD - Analysis Report

Company Number: 14780869

Analysis Date: 2025-07-29 19:11 UTC

1. Credit Opinion: DECLINE
   Grimoire of Horror Ltd, a newly incorporated small private limited company in the publishing sector, demonstrates a weak financial position with significant net liabilities (£918) as of its first reporting period. The company’s current liabilities exceed its current assets by a large margin, indicating poor short-term liquidity and an inability to meet obligations as they fall due. Given the negative net assets and absence of any meaningful cash reserves or financial buffers, credit risk is high. Without evidence of stable or growing revenues, or external financial support, extending credit would be imprudent.

2. Financial Strength:
   The balance sheet shows total current assets of only £141, entirely cash, against current liabilities of £1,059, creating a negative working capital position of £918. There are no fixed assets reported. The company’s shareholders’ funds are negative (£918), indicating accumulated losses since inception. The minimal share capital (£1) and absence of retained earnings or reserves further highlight fragile equity and financial weakness typical of a start-up in its initial year. No audit was conducted, consistent with exemption rules for small companies.

3. Cash Flow Assessment:
   The cash balance at year-end is £141, insufficient to cover even a fraction of current liabilities (£1,059). There is no detailed cash flow information provided, but the negative net current assets and net liabilities suggest ongoing cash flow stress. The company’s ability to generate positive operating cash flows is unproven, and the sole director’s occupation as a photographer may indicate limited operational scale or diversification. Without additional capital injection or revenue growth, liquidity constraints are evident.

4. Monitoring Points:

• Improvement in working capital and net asset position in subsequent accounts
• Evidence of revenue growth and profitability to build retained earnings
• Timely payment of creditors and avoidance of overdue liabilities
• Any capital injections or external funding to strengthen balance sheet
• Director’s continued involvement and any changes to management or control