Company Number: 13582100

Analysis Date: 2025-07-29 20:16 UTC

1. Risk Rating: MEDIUM
   GROVEGREEN CONSULTANCY LTD shows signs of marginal solvency with very low net assets (£407 as of 2024) and a negative net current asset position (-£1,520), which suggests potential liquidity constraints. However, it remains active, compliant with filings, and has no overdue accounts or returns, indicating operational and regulatory discipline.

2. Key Concerns:

• Liquidity Risk: Negative net current assets of £1,520 in 2024 imply the company may struggle to meet short-term liabilities promptly.
• Volatility in Net Assets: Fluctuations between positive and negative net assets over recent years indicate instability in financial performance and capital structure.
• Provision and Accruals: The presence of £7,000 provisions and £9,000 accruals/deferred income on the 2024 balance sheet may signal contingent liabilities or deferred revenues that could impact future cash flows.

3. Positive Indicators:

• Compliance and Filing: All statutory filings are up to date with no overdue accounts or confirmation statements, reducing regulatory risk.
• No Employees: Zero average employees minimize fixed overhead costs and reduce operational risk.
• Micro-entity Status: The small scale and micro-entity classification limit complexity and may suggest manageable operational scope.

4. Due Diligence Notes:

• Investigate the nature and timing of provisions and accruals totaling £16,000 to assess any hidden liabilities or revenue recognition issues.
• Review cash flow statements (not provided) to confirm the company’s ability to service short-term obligations given negative working capital.
• Understand the business model and revenue generation to evaluate sustainability, given the fluctuating net asset figures and minimal staffing.
• Confirm absence of director conduct issues or disqualifications, as none are indicated but verification is prudent.
• Assess whether the fixed asset value (£17,927) is tangible and liquid or tied up in non-current investments.