GADS PROPERTY LIMITED

Executive Summary

Gads Property Limited currently presents a high risk profile due to negative net assets and substantial director financing, raising solvency and liquidity concerns. The company complies with regulatory filing requirements but shows limited operational scale and cash resources. Further investigation into debtor quality and financing arrangements is advised to clarify financial stability and business sustainability.

GADS PROPERTY LIMITED - Analysis Report

Company Number: 13804076

Analysis Date: 2025-07-29 20:52 UTC

1. Risk Rating: HIGH
   The company exhibits a negative net asset position and a significant director loan creditor, indicating solvency concerns and reliance on related-party financing.

2. Key Concerns:

• Negative shareholders’ funds of £2,144 as of 31 December 2023, implying the company’s liabilities exceed its assets.
• Director’s loan of £11,998 constitutes a material related-party liability, suggesting dependence on director financing rather than operational cash flow.
• Minimal cash balance (£215) and lack of employees raise liquidity and operational sustainability questions, as the company may struggle to meet short-term obligations or scale operations.

3. Positive Indicators:

• The company is compliant with filing deadlines and has no overdue accounts or confirmation statements, indicating good regulatory adherence.
• Current assets (£10,215) largely comprise debtors (£10,000), showing some receivable inflow potential.
• Ownership and control are consolidated under a single director and shareholder, which can facilitate swift decision-making.

4. Due Diligence Notes:

• Investigate the nature and collectability of debtors to assess quality of current assets and actual cash conversion prospects.
• Assess terms and repayment plans for the director loan to evaluate the risk of sudden repayment demands impacting liquidity.
• Review business model viability given no employees and reliance on director advances—confirm whether the company generates recurring revenue or is in development stage.
• Confirm absence of any contingent liabilities or off-balance-sheet obligations not disclosed in abridged financials.
• Examine the reason for the negative retained earnings and whether losses are expected to continue or have been one-off.