KEEP OFF THE GRASS LTD

Executive Summary

KEEP OFF THE GRASS LTD demonstrates solvency and regulatory compliance as a micro-entity, with current assets exceeding liabilities. However, a notable reduction in net assets in the latest year and reliance on director support introduce some risk to operational stability. Further due diligence on financial performance and director commitments is advisable to confirm sustainability.

KEEP OFF THE GRASS LTD - Analysis Report

Company Number: 13645486

Analysis Date: 2025-07-29 12:42 UTC

1. Risk Rating: LOW to MEDIUM
   The company is a micro-entity with modest net assets and current assets consistently exceeding current liabilities, indicating solvency. However, the material reduction in net current assets and net assets in the latest year suggests some erosion of financial buffer, warranting cautious monitoring.

2. Key Concerns:

• Declining Net Assets: Net assets decreased from £5,017 in 2023 to £1,056 in 2024, a significant drop that may reflect reduced profitability, increased expenses, or asset write-downs.
• Low Absolute Asset Base: The company’s total asset base remains very small, with current assets at £1,710 in 2024, which may limit operational flexibility and resilience to unexpected costs.
• Director Dependency: The going concern statement explicitly relies on continued support from the sole director who also owns 75-100% of shares, highlighting potential governance and continuity risk if that support ceases.

3. Positive Indicators:

• Compliance with Filing Obligations: The company is up to date with both accounts and confirmation statement filings, suggesting good regulatory compliance.
• Positive Working Capital: Despite the asset decline, current assets still exceed current liabilities, supporting short-term liquidity.
• No Audit Requirement: As a micro-entity, the company has cost-effective reporting, and there is no indication of audit qualification or adverse comments.

4. Due Diligence Notes:

• Investigate the causes behind the sharp reduction in net assets and net current assets in the latest year to ascertain if this is a one-off event or indicative of operational challenges.
• Review cash flow statements and turnover trends (not provided) to assess ongoing liquidity and revenue stability.
• Confirm the nature and extent of director support referenced in the going concern assumption, including any financial or operational commitments.
• Consider director background checks beyond Companies House data for any undisclosed governance or reputational risks.
• Monitor for any contingent liabilities or off-balance-sheet exposures not reflected in micro-entity accounts.