Company Number: 12943936

Analysis Date: 2025-07-20 19:14 UTC

1. Risk Rating: MEDIUM

Justification: Galactic Golf Ltd shows a mixed financial picture with a recent deterioration in liquidity marked by negative net current assets and increased current liabilities at year-end 2023. However, the company maintains positive net assets and shareholders’ funds with no overdue filings, indicating ongoing operational viability but with some solvency and liquidity risks to monitor.

2. Key Concerns:

• Liquidity deterioration: Current liabilities have nearly doubled from £65.9k in 2022 to £123.3k in 2023, while current assets decreased from £145.0k to £101.8k, resulting in net current liabilities of £21.6k in 2023 compared to net current assets of £79.0k in 2022.
• Significant increase in fixed assets: Fixed assets rose sharply from £20.4k to £138.4k in 2023 due to capital expenditure (£126.8k additions), which could strain cash reserves and working capital.
• Concentration of directors: Four directors all with the same address may indicate a closely-held private company with potential governance and control risks; no PSC information provided, limiting transparency on ultimate control.

3. Positive Indicators:

• Positive net assets and shareholders' funds of approximately £97.3k, indicating the company’s book value exceeds liabilities.
• No overdue statutory filings for accounts or confirmation statements, suggesting compliance with Companies House requirements.
• The company is active with ongoing operations evidenced by an active website and an increase in employee numbers from 4 to 6 year-on-year.

4. Due Diligence Notes:

• Review the nature and financing of the fixed asset additions to assess impact on cash flow and verify whether funded by debt or equity.
• Investigate the reasons behind the large increase in current liabilities and the composition of “other creditors” (£116k in 2023), assessing payment terms and any supplier or creditor risks.
• Obtain management accounts or cash flow forecasts post-October 2023 to evaluate ongoing liquidity and solvency given the negative working capital position.
• Clarify ownership and control structure given absence of PSC data and concentration of directors at a single address.
• Confirm any contingent liabilities or provisions represented by the £19.5k provisions for liabilities in 2023.