BURGESS & GILBERT GROUP LTD

Executive Summary

Burgess & Gilbert Group Ltd is financially distressed with negative net assets driven by large directors’ loans classified as current liabilities. Liquidity is critically low, and the company lacks operational cash flow to cover debts. Credit approval is not recommended until the company improves its financial position or secures additional capital.

BURGESS & GILBERT GROUP LTD - Analysis Report

Company Number: 13804733

Analysis Date: 2025-07-29 21:10 UTC

1. Credit Opinion: DECLINE
   Burgess & Gilbert Group Ltd demonstrates a severely weakened financial position as of the latest accounts dated 31 December 2023. The company’s net current liabilities stand at £1,787, and net assets are negative by the same amount, primarily due to a significant directors’ loan of £1,798 classified as a current liability. This indicates that the company is heavily reliant on director funding to meet short-term obligations and is unable to generate sufficient operational cash flow. Given the negative equity and lack of liquidity, the company currently lacks the financial strength to service debt or new credit facilities without additional capital injection or a significant turnaround.

2. Financial Strength:
   The balance sheet shows a sharp deterioration from prior years. In 2022 and 2021, the company had positive net current assets of £2 and positive net assets of £2, indicating a very modest but stable position. However, by the end of 2023, net current assets turned negative to -£1,787, with total net liabilities of the same value. This deterioration is solely driven by the directors’ loan account classified as a current liability, which suggests reliance on director financing rather than external creditors. Shareholders’ funds are negative, reflecting accumulated losses or withdrawals exceeding equity contributions. The company holds minimal current assets (£11) and negligible cash (£9), indicating weak asset backing and financial fragility.

3. Cash Flow Assessment:
   The company’s cash at bank is only £9, which is insufficient to cover short-term liabilities of £1,798. The working capital deficit (-£1,787) highlights an acute liquidity crisis. The company likely depends on directors’ loans to meet operational expenses and has virtually no buffer to absorb unexpected costs or delays in receivables. Debtors remain minimal at £2, and the absence of stock or other current assets further limits liquidity options. There is no indication of positive operational cash flow or profitability to improve this position in the near term.

4. Monitoring Points:

• Directors’ loan account: Monitor changes in the level and classification of these loans. Any repayment or conversion to equity would improve solvency.
• Cash balances and working capital: Regular updates on liquidity to assess if the company can meet short-term obligations without further director funding.
• Profit & Loss trends: Since profit and loss statements are not filed, any internal data on profitability or cash generation should be reviewed to understand operational viability.
• Management actions on restructuring or capital injection: Look for evidence of business restructuring, new equity investment, or refinancing to strengthen the balance sheet.

Overall, the company is in a precarious financial state with negative net assets and over-reliance on director funding. Without external capital or a significant business turnaround, the risk of insolvency is elevated.