G T & R CLARKE PROPERTY LIMITED

Executive Summary

G T & R Clarke Property Limited exhibits poor financial health with negative net assets and significant liquidity shortfalls driven by reliance on related party loans. The company’s inability to cover current liabilities with current assets and absence of fixed debt repayment terms undermine its creditworthiness. Consequently, credit approval is not recommended without substantial financial restructuring and evidence of improved cash flow generation.

G T & R CLARKE PROPERTY LIMITED - Analysis Report

Company Number: 13014294

Analysis Date: 2025-07-20 14:41 UTC

1. Credit Opinion: DECLINE
   G T & R Clarke Property Limited demonstrates weak financial health with persistent net current liabilities and negative shareholders’ funds, indicating insolvency on a balance sheet basis. The company’s current liabilities substantially exceed current assets (£136,567 vs £2,612 in 2023), and total equity is negative (£-8,325). There is reliance on related party loans with no fixed repayment terms or interest, which raises concerns about financial sustainability and independent repayment capability. The lack of positive cash flow indicators and minimal asset liquidity impairs the ability to service external debt. Given these factors and absence of profitability disclosures, credit exposure should be declined.

2. Financial Strength:
   The company holds investment property valued at £125,630, which is the main fixed asset. However, net current liabilities are substantial (£-133,955 in 2023) and have worsened compared to previous years. Shareholder funds deteriorated from a marginal negative in 2022 (£-79) to a more significant deficit in 2023 (£-8,325). The balance sheet reflects a weak capital structure with no retained earnings and ongoing negative reserves (£-8,425). The company’s net liabilities position signals poor solvency and lack of financial cushion against operating or market shocks.

3. Cash Flow Assessment:
   Current assets total only £2,612, mostly debtors, which is negligible against current liabilities of £136,567. This results in severely negative working capital, indicating liquidity risk. Related party debt (£127,302) forms the bulk of current liabilities, with no interest charged and no fixed repayment schedule, suggesting informal funding rather than robust cash generation. There is no evidence of operational cash inflows or turnover figures disclosed. This points to inadequate cash flow to meet short-term obligations without continued related party support.

4. Monitoring Points:

• Track changes in working capital and current liabilities, particularly related party balances and repayment arrangements.
• Monitor any improvements in profitability and cash generation reflected in future accounts.
• Observe changes in investment property valuation and potential liquidity from asset disposals.
• Assess management actions to address negative equity and sustainability of funding sources.
• Review subsequent filings for any material changes in financial position or creditor arrangements.