DR SIMON GILL INV LTD

Executive Summary

DR SIMON GILL INV LTD exhibits a fragile financial position with negative net assets and substantial long-term liabilities exceeding asset values. Liquidity is tight with minimal working capital, raising concerns over the company’s ability to meet debt commitments. Given these factors, the credit risk is high and lending is not recommended without significant improvement in financial health or security.

DR SIMON GILL INV LTD - Analysis Report

Company Number: 13134173

Analysis Date: 2025-07-20 12:04 UTC

1. Credit Opinion: DECLINE
   DR SIMON GILL INV LTD demonstrates a weak financial position with persistent negative net assets and shareholders funds, indicating accumulated losses or undercapitalisation. The company’s liabilities exceed its assets by £5,340 as of the latest accounts, driven primarily by significant long-term creditors (£543,090). This imbalance, coupled with minimal current assets (£47,402) against current liabilities, raises concerns about its ability to meet debt obligations. The absence of profitability and negative equity signal elevated credit risk. Without clear evidence of improved cash generation or asset realisation plans, extending credit is not advisable.

2. Financial Strength:
   The balance sheet shows fixed assets valued at £495,000, which forms the bulk of total assets, suggesting asset backing. However, the company carries substantial long-term liabilities exceeding total assets, resulting in negative net assets (£5,340). Current assets are modest (£47,402) and only marginally exceed current liabilities, yielding positive but limited net current assets (£42,750). The financial structure is highly leveraged, with liabilities surpassing equity, reflecting weak capitalisation and limited financial resilience.

3. Cash Flow Assessment:
   Current assets largely consist of cash or receivables, but given their low absolute value relative to current liabilities (£543,090), liquidity is constrained. The working capital position is only slightly positive, indicating tight short-term funding. No detailed cash flow statement was provided, but the balance sheet suggests limited liquidity buffers to support operational needs or debt servicing. The company’s ability to generate sufficient cash flow from operations to cover obligations appears doubtful.

4. Monitoring Points:

• Track changes in net assets and shareholders funds for signs of capital injection or profit generation.
• Monitor current ratio and net current assets to ensure liquidity does not deteriorate.
• Review any changes in long-term creditor balances and repayment schedules.
• Observe director’s commentary or filings for restructuring or refinancing plans.
• Watch for timely filing of accounts and confirmation statements to detect governance issues.