Company Number: 13760864

Analysis Date: 2025-07-29 20:23 UTC

1. Credit Opinion: APPROVE
   Harborne Grounds & Painters Ltd demonstrates solid financial stability for a micro-entity with consistent growth in net assets and net current assets over the last two years. The company has no overdue filings and is active with a single director who holds full control, suggesting clear and focused management. The absence of audit requirements due to its size limits detailed scrutiny, but the available data points to a responsible management approach. The company’s liquidity and equity base support its ability to meet short-term obligations, indicating a low credit risk for modest credit facilities.

2. Financial Strength:
   The company’s net assets increased substantially from £23,627 in 2022 to £48,487 in 2023, reflecting retained earnings or capital injections. Fixed assets are minimal but slightly increased, consistent with a service-oriented business. Net current assets more than doubled from £24,028 to £47,270, highlighting an improved working capital position. This healthy equity base and positive working capital provide a buffer against financial stress and underpin the company’s financial resilience.

3. Cash Flow Assessment:
   Current assets stood at £66,208 against current liabilities of £18,938 at year-end 2023, resulting in a strong net current asset position. This implies the company holds sufficient liquid resources (cash, receivables, or short-term assets) to cover its short-term debts almost 3.5 times over, indicating good liquidity management. Given the company’s micro size and single employee (director), working capital demands are likely low, further supporting cash flow adequacy to service any credit extended.

4. Monitoring Points:

• Continued monitoring of net current assets and liquidity ratios to ensure working capital remains strong.
• Watch for any delays in statutory filings or changes in director status as a single-person management structure concentrates risk.
• Review any significant changes in turnover or profitability when those figures become available, as micro-entity accounts provide limited detail.
• Assess any new debt levels relative to equity to avoid over-leverage given the small asset base.