GW LANDSCAPE AND DESIGN LTD

Executive Summary

GW Landscape and Design Ltd has shown a positive turnaround in net assets after previous losses, but remains a small micro-entity with limited working capital and some long-term debt. The company’s ability to meet short-term obligations is constrained, suggesting credit approval should be conditional on ongoing liquidity monitoring. Given its early stage and modest scale, caution is advised with continuous review of financial and operational performance.

GW LANDSCAPE AND DESIGN LTD - Analysis Report

Company Number: 13568790

Analysis Date: 2025-07-20 13:21 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   GW Landscape and Design Ltd shows signs of recovery in net assets after a prior year loss but has a modest financial base typical of a micro-entity. The company’s recent turnaround from negative net assets (£-3,478 in 2023) to positive net assets (£5,019 in 2024) is encouraging but the presence of long-term liabilities (£8,150) and a negative net current asset position (-£4,395) raises concerns about short-term liquidity. Given the company's small scale, limited employee count (2), and early stage (founded 2021), credit approval should be conditional on close monitoring of cash flow and debt servicing capacity, especially given the industry’s exposure to economic cycles.

2. Financial Strength:
   The balance sheet shows a small asset base with fixed assets of £17,564 and current assets of £16,680 as of August 2024. However, current liabilities exceed current assets resulting in a working capital deficit of £4,395, which can pressure short-term liquidity. The company has improved its net asset position to £5,019 from a negative £3,478 the previous year, primarily due to reduction in current liabilities and the introduction of long-term debt (£8,150). This indicates some restructuring or refinancing but also introduces repayment obligations extending beyond one year. The capital and reserves are positive, but the overall financial strength remains fragile and typical for a micro-sized entity in an early growth phase.

3. Cash Flow Assessment:
   Current liabilities exceed current assets, indicating potential liquidity constraints in meeting short-term obligations. The working capital deficit (-£4,395) suggests the company may rely on credit facilities or owner funding to manage day-to-day operations. The company employs only two people, which controls fixed costs, but limited scale and margins in landscaping services may constrain cash inflows. No explicit cash flow statement is provided, but the balance sheet trends suggest cash flow management should be closely scrutinized before extending or increasing credit limits.

4. Monitoring Points:

• Monitor quarterly or biannual current asset to current liability ratios to detect liquidity pressures early.
• Watch long-term debt repayment schedules and any changes in financing arrangements.
• Track revenue growth and profitability trends in future accounts to confirm positive trajectory.
• Review director and management conduct for any changes that may impact governance or financial stewardship.
• Monitor overdue filings or changes in company status that could signal distress.