AL GHAITH GENERAL TRADING LTD

Executive Summary

AL GHAITH GENERAL TRADING LTD currently presents a high risk profile due to its negative net asset position and lack of current assets, indicating solvency and liquidity challenges. While the company remains compliant with filings, operational capacity and financial sustainability are questionable. Further investigation into liabilities, cash flows, and business operations is recommended before considering investment.

AL GHAITH GENERAL TRADING LTD - Analysis Report

Company Number: 12616224

Analysis Date: 2025-07-20 16:18 UTC

1. Risk Rating: HIGH
   The company exhibits a negative net asset position as of the latest financial year end, indicating insolvency on a balance sheet basis. The company’s current liabilities exceed its current assets by £980 with zero current assets reported for 2024, raising significant solvency and liquidity concerns.

2. Key Concerns:

• Negative net assets: The balance sheet shows net liabilities of £980 at 31 May 2024, deteriorating from previous years’ positive net assets. This implies the company’s liabilities exceed its assets, indicating financial distress.
• Zero current assets: The absence of current assets in the latest accounts suggests no cash or receivables are available to meet short-term obligations, pointing to liquidity risk.
• No reported employees or operational scale: With zero employees and minimal share capital (£100), the company may lack operational capacity or scale to generate revenue and cash flows, raising questions about sustainability.

3. Positive Indicators:

• Compliance with filing obligations: The company is up-to-date with its annual accounts and confirmation statement filings, with no overdue returns, indicating regulatory compliance.
• Single director with full control: Mr Roger Brown owns 75-100% shares and is the sole director, potentially enabling agile decision-making.

4. Due Diligence Notes:

• Investigate the nature and timing of current liabilities: Clarify what constitutes the £980 in current liabilities and whether there are any imminent creditor pressures or defaults.
• Review cash flow history and forecasts: Assess if the company has any incoming cash or contracts to improve liquidity, or if it relies on shareholder funding.
• Understand business model viability: Given the SIC code (construction of other civil engineering projects) and no employees, verify if operations are outsourced or dormant, and assess revenue generation capability.
• Check for any director conduct records or related party transactions involving Mr Brown or others.
• Confirm whether the company has any contingent liabilities or off-balance sheet commitments.