GREENWAY TRAINING LIMITED

Risk Rating: LOW

Greenway Training Limited exhibits strong financial health with consistent growth in net assets over its four-year history. The company maintains a robust cash position and positive working capital, indicating a low risk of insolvency or liquidity issues. The primary area of attention is the significant increase in current liabilities, particularly taxation and other creditors, which should be monitored but does not currently pose an immediate threat given the cash reserves.

Key Concerns

1. Concentration of Current Liabilities: The most recent balance sheet shows a substantial increase in "Taxation and social security" (£129,264) and "Other creditors" (£157,443). While the company has the cash to cover these, the sudden growth in these buckets warrants scrutiny to ensure timely settlement and avoid potential regulatory or HMRC issues.
2. Lack of Audited Financials: As a small company utilizing "Total Exemption Full," the financial statements are unaudited. This places complete reliance on the directors' representations without independent verification, limiting the depth of assurance for external parties.
3. Opaque P&L Performance: The company has filed "filleted" accounts, meaning the Statement of Income and Retained Earnings has not been delivered to Companies House. While retained earnings have grown significantly (£345,081), the specific revenue, gross margin, and net profit figures driving this growth are not publicly available, making it difficult to assess operational profitability trends.

Positive Indicators

1. Strong Liquidity: The company holds £302,974 in cash at bank, a significant increase from £128,388 in the prior year. This provides a comfortable buffer to meet short-term obligations.
2. Positive Working Capital: Net current assets stand at £122,673, a marked improvement from a net current liability position of (£58,291) in 2024. The current ratio is approximately 1.37x, indicating a healthy short-term financial position.
3. Tangible Asset Base: The company has invested in land and buildings (Net Book Value of £160,398) and plant and machinery (£63,445). This suggests a long-term operational commitment and provides collateral value, moving beyond a purely service-based balance sheet.

Due Diligence Notes

1. Composition of "Other Creditors": The £157,443 listed under other creditors is a material sum for a company of this size. Investigation should focus on whether this represents director loans, deferred income (common in training/education businesses where courses are prepaid), or trade-related accruals. If director loans are significant, their terms and subordination status should be reviewed.
2. Tax Liability Status: The £129,264 due for taxation and social security should be verified to ensure it is not overdue and that the company has adequate provisions for current and future corporation tax liabilities.
3. Property Details: The acquisition of "Land and buildings" should be investigated. Confirm if this is a freehold or leasehold property used for the company's training operations and review any associated financing arrangements (e.g., mortgages) that may not be immediately apparent from the balance sheet summary.
4. Profitability Verification: Request internal management accounts or the full unfiled P&L statement to verify the margins and sustainability of the "Other education" business activities.