CGA GLOBAL HOLDINGS LTD

Executive Summary

CGa Global Holdings Ltd shows a high-risk financial profile due to persistent negative net current assets and heavy dependence on intra-group funding. While regulatory compliance is satisfactory and investment in its subsidiary appears stable, the company’s minimal equity and poor liquidity position raise concerns about its standalone solvency and operational sustainability. Further due diligence on group support mechanisms and subsidiary performance is recommended.

CGA GLOBAL HOLDINGS LTD - Analysis Report

Company Number: 13445467

Analysis Date: 2025-07-29 15:04 UTC

1. Risk Rating: HIGH
   The company exhibits persistent negative net current assets and very minimal net assets, with liabilities almost entirely comprising amounts owed to group undertakings. This suggests significant reliance on intra-group funding and limited liquid resources to meet short-term obligations independently.

2. Key Concerns:

• Negative Working Capital: The company has consistently reported net current liabilities of approximately £475,400, indicating an inability to cover short-term debts with current assets.
• Dependence on Group Funding: Creditors largely consist of amounts owed to related parties (£474,518 in 2023), reflecting reliance on group support rather than external financing or operational cash flow.
• Minimal Equity Cushion: Shareholders' funds remain nominal (£100), offering negligible buffer against operational or financial shocks.

3. Positive Indicators:

• Timely Filing Compliance: Both accounts and confirmation statements are up to date with no overdue filings, indicating good regulatory compliance.
• Stable Investment Value: The investment in the wholly owned subsidiary CGA Automation Limited is carried at £475,500 with no impairment recognized this year, suggesting the underlying asset value is maintained.
• Experienced Directors: Four directors have been consistently involved since incorporation, which may indicate stable governance at the management level.

4. Due Diligence Notes:

• Examine Group Financial Health: Investigate the financial stability and creditworthiness of related parties providing funding to assess risk of withdrawal or restructuring of intra-group loans.
• Subsidiary Performance Review: Obtain detailed financial and operational data on CGA Automation Limited to evaluate the sustainability and profitability of the core business activities.
• Cash Flow Analysis: Review cash flow statements and working capital management to determine if the company can improve liquidity independently or remains dependent on group advances.