THEGOOD 1 LIMITED

Executive Summary

Thegood 1 Limited is a small holding company with declining net current assets and rising short-term liabilities, indicating tightening liquidity. While the company remains solvent with positive equity, the financial profile suggests caution. Credit approval is recommended subject to conditions on liquidity monitoring and reassurances on cash flow stability.

THEGOOD 1 LIMITED - Analysis Report

Company Number: 12997284

Analysis Date: 2025-07-19 12:32 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Thegood 1 Limited is a micro-sized private limited company classified as a holding company. The company is active with no overdue filings, which supports regulatory compliance. However, the company’s net current assets have significantly declined from £88,475 in 2021 to £31,089 in 2024, indicating a weakening liquidity position. The increase in current liabilities in 2024 (up to £42,340 from £19,340 in 2023) is a concern, suggesting rising short-term obligations that are not matched by increased current assets. While shareholders’ funds remain positive, the downward trend in working capital warrants caution. Credit approval is recommended with conditions including close monitoring of liquidity, confirmation of the nature and terms of current liabilities, and assurance of stable cash flows to meet debt servicing.

2. Financial Strength:
   The balance sheet shows a reduction in net current assets and shareholders’ funds over the last three years. Total assets less current liabilities dropped from £54,791 in 2023 to £31,089 in 2024, indicating a contraction in financial buffer. Fixed assets are minimal and were last reported in 2020 at £29,500. The company’s equity base remains positive but diminished, reflecting accumulated losses or distributions. The business has limited financial cushioning against adverse events, and the increase in short-term liabilities reduces financial flexibility.

3. Cash Flow Assessment:
   Current assets are relatively stable (~£73k) but current liabilities more than doubled in 2024, significantly reducing net current assets. This suggests tighter working capital management or increased short-term creditor reliance. With only one employee and no audit requirement, operational complexity is low but cash inflows must be sufficient to cover rising liabilities. Without detailed cash flow statements, the increased current liabilities raise questions on liquidity sufficiency. The company should maintain or improve receivables collection and manage payables carefully to avoid cash flow strain.

4. Monitoring Points:

• Quarterly review of current liabilities and their maturity profiles to avoid liquidity crunches.
• Tracking net current assets for further deterioration.
• Monitoring cash conversion cycles, including receivables and payables turnover.
• Review of any new debt or credit facilities and their servicing impact.
• Management changes and any PSC alterations, as control passed from Mr. Theodorou to Ms. Gourna recently.
• Operational performance updates, especially if the company undertakes new investments or changes business strategy.