Company Number: 13065951

Analysis Date: 2025-07-20 16:05 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Impney Limited is an active private limited company operating in the development of building projects sector. The company has net liabilities and negative shareholders’ funds, reflecting a balance sheet deficit of approximately £165k at the last year-end. However, these liabilities include significant intercompany borrowings (£2.65m) from related group companies, which are deferred and supported by the ultimate parent, Greyfort Holdings Limited. The directors confirm ongoing parent support and the company’s going concern status despite the negative net asset position. This parent backing reduces immediate credit risk but requires monitoring. Approval can be considered on the condition of continued group support and covenant compliance.

2. Financial Strength:
   The balance sheet reveals substantial current assets (£2.49m), predominantly stock related to building projects (£2.46m), with current liabilities of about £2.65m (mainly long-term borrowings from related parties). Net current assets are positive (£2.49m), showing adequate short-term working capital. However, the overall net liabilities position signals capital erosion. The company’s financial structure relies heavily on related-party funding, secured partly by a legal charge, implying limited external financial independence. The small share capital of £1 highlights minimal equity buffer. Given the negative equity, credit exposure is supported primarily by the parent group’s financial strength rather than the company’s standalone position.

3. Cash Flow Assessment:
   Cash balances are very low (£21k), with minimal trade debtors (£6k), suggesting limited immediate liquidity outside of stock holdings. The current asset composition is skewed to stock rather than cash or receivables, which may delay cash conversion. However, the company’s positive net current assets indicate it can meet short-term liabilities as they fall due. The high intercompany borrowing is deferred and not repayable in the short term, easing cash flow pressure. The company employs only two staff, so operating overheads are likely low, but cash flow remains dependent on successful property development sales and parent company funding.

4. Monitoring Points:

• Continued financial support and refinancing terms from Greyfort Holdings Limited and related group companies.
• Timely realization of stock (building projects), monitoring for any impairments or delays in sales.
• Cash flow trends, especially ability to convert stock into cash and manage working capital.
• Any changes in net liabilities or shareholder funds that may indicate worsening financial position.
• Compliance with any intercompany loan covenants or security arrangements.
• Market conditions affecting property development sector and potential impact on trading performance.