GROVEGREEN CONSULTANCY LTD

Executive Summary

GROVEGREEN CONSULTANCY LTD is a micro-entity operating in accounting and auditing, with marginal solvency and liquidity concerns evidenced by negative net current assets and low net equity. The company maintains good compliance with statutory filings and has no employees, which mitigates operational risk. Further review of provisions, cash flows, and business sustainability is recommended to fully understand financial stability.

GROVEGREEN CONSULTANCY LTD - Analysis Report

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.