G &S BUILDING CONSTRUCTIONS LTD

Executive Summary

G & S Building Constructions Ltd demonstrates significant solvency and liquidity challenges, with negative net assets and working capital deficits persisting over recent years. While regulatory compliance is maintained and there are signs of slight financial improvement, the company's small scale and financial position pose high risks to operational stability. Further due diligence is recommended to clarify cash flow dynamics and future business prospects.

G &S BUILDING CONSTRUCTIONS LTD - Analysis Report

Company Number: 12688529

Analysis Date: 2025-07-29 12:59 UTC

1. Risk Rating: HIGH
   The company exhibits persistent net current liabilities and negative net assets over multiple years, indicating solvency concerns. The micro-entity status and minimal share capital limit financial resilience.

2. Key Concerns:

• Solvency Risk: Negative net assets reported for three consecutive years (2022-2024), with net liabilities increasing from -£3,671 in 2023 to -£81 in 2024, signaling ongoing financial distress.
• Liquidity Issues: Consistently negative net current assets (working capital), with a deficit of £14,569 as of June 2024, suggesting difficulty in meeting short-term obligations.
• Operational Stability: Minimal fixed assets and small scale (average 2 employees) may limit operational capacity and growth potential in a competitive building completion sector.

3. Positive Indicators:

• The company is current with statutory filings (accounts and confirmation statement) with no overdue submissions, reflecting regulatory compliance.
• Slight improvement in net liabilities from -£3,671 in 2023 to -£81 in 2024, which may indicate some financial management efforts.
• The director has maintained consistent involvement since incorporation, which may support continuity.

4. Due Diligence Notes:

• Review detailed cash flow statements (not provided) to assess operational cash generation and short-term liquidity management.
• Investigate the nature and terms of current liabilities due within one year to understand creditor relationships and potential refinancing risks.
• Examine business contracts and pipeline to evaluate future revenue prospects and sustainability of operations.
• Confirm absence of director disqualifications or regulatory sanctions beyond what's publicly stated.
• Assess director’s plans or proposals to restore positive equity and ensure ongoing viability.