Company Number: SC785297

Analysis Date: 2025-07-20 16:47 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Less Grey Imaging Ltd is an early-stage company incorporated in late 2023 with limited trading history and financial data. The company shows net liabilities of £28,658 at the financial year-end, primarily driven by convertible loan notes of £100,000 due within one year. The presence of this loan indicates reliance on external funding. While the company currently has no overdue filings and a reasonable cash balance (£6,719), the negative net current assets position (-£30,001) and net liabilities suggest limited immediate financial strength. Credit approval is conditional on continued monitoring of cash flow generation and successful conversion or refinancing of the loan notes to avoid liquidity pressure.

2. Financial Strength:
   The balance sheet is currently weak, showing net liabilities of £28,658. Fixed assets are minimal (£1,343 in computer equipment), with current assets at £92,697 driven mainly by accrued income (£80,676) and VAT recoverable. Current liabilities total £122,698, dominated by convertible loan notes (£100,000) and accruals. The company has a shareholder deficit, reflecting accumulated losses typical of a start-up. The capital structure comprises only one £1 ordinary share, indicating minimal equity funding to date. Overall, financial strength is limited, reflecting an early development stage with negative equity.

3. Cash Flow Assessment:
   Cash at bank is low but positive (£6,719), providing a small liquidity buffer. The significant accrued income suggests expected incoming cash flows; however, timing and collectability risk should be assessed. The large convertible loan note falling due within one year could pressure liquidity if not converted or refinanced. Negative net current assets (-£30,001) highlight working capital constraints. The company’s ability to meet short-term obligations depends on timely realisation of debtors and funding arrangements. Cash flow visibility is limited given the start-up nature and lack of historical trading data.

4. Monitoring Points:

• Liquidity and cash flow conversion of accrued income into actual receipts.
• Status and terms of convertible loan notes (conversion or refinancing plans).
• Management’s progress in achieving operational milestones and revenue growth.
• Any additional equity injections or external funding rounds.
• Timely filing of future accounts and confirmation statements.
• Market and sector developments in research and experimental development on natural sciences and engineering (SIC 72190) that may impact business viability.