RENSHAW GREEN LTD

Executive Summary

Renshaw Green Ltd exhibits signs of financial distress with negative net assets and working capital deterioration as of its latest accounts. While compliance and governance appear satisfactory, the company’s liquidity and solvency risks are elevated, warranting thorough investigation into its operational and financial sustainability before considering investment.

RENSHAW GREEN LTD - Analysis Report

Company Number: 12924457

Analysis Date: 2025-07-20 12:03 UTC

1. Risk Rating: HIGH
   The company shows a significant deterioration in net assets and working capital in the latest financial year, moving from positive net assets of £7 in 2022 to negative net assets of £6,167 in 2023. The net current liabilities position of £14,820 indicates potential liquidity stress, raising concerns about the company’s ability to meet short-term obligations.

2. Key Concerns:

• Negative Net Assets and Working Capital: The shift to negative equity and net current liabilities signals solvency risks and potential financial distress.
• Low Share Capital: With only £2 in share capital, the company has minimal equity buffer to absorb losses.
• Unchanged Employee Numbers with Increased Liabilities: Maintaining 4 employees despite worsening financials may pressure cash flow further, coupled with no indication of revenue growth or improved asset base.

3. Positive Indicators:

• Compliance with Filing Deadlines: Accounts and confirmation statements are up to date with no overdue filings, which reflects good governance in statutory compliance.
• Stable Directorship and PSC Transparency: The two directors and persons of significant control are clearly documented with no red flags such as disqualifications or governance issues.
• Business Classification and Activity: The company operates in event catering and retail food sectors, which can offer diverse revenue sources if managed effectively.

4. Due Diligence Notes:

• Investigate the cause of the sharp decline in net assets and the increase in current liabilities—whether due to increased borrowings, unpaid creditors, or other liabilities.
• Review cash flow statements and profitability trends to assess operational viability and funding requirements.
• Confirm the company’s ongoing trade status and ability to service debts given its micro-entity size and limited capital.
• Examine any related-party transactions or contingent liabilities not evident in the basic financial data.