GAMMA SYSTEMS (MAINTENANCE) LTD.

Executive Summary

Gamma Systems (Maintenance) Ltd. is a small electrical installation company showing improved net current assets and good regulatory compliance. However, significant fluctuations in creditors and working capital warrant further investigation to confirm liquidity stability. The company’s limited capitalisation and recent director turnover also suggest moderate operational risks that investors should monitor closely.

GAMMA SYSTEMS (MAINTENANCE) LTD. - Analysis Report

Company Number: 12550723

Analysis Date: 2025-07-29 20:22 UTC

1. Risk Rating: MEDIUM
   The company presents a moderate risk profile. While it is currently active and compliant with filing obligations, there are some concerns regarding liquidity fluctuations and creditor balances that warrant caution.

2. Key Concerns:

• Liquidity volatility: Current liabilities have materially decreased from £215k in 2023 to £95k in 2024, while current assets also fell from £241k to £198k, indicating significant balance sheet shifts that may reflect cash flow or operational issues.
• Trade creditors and other creditors concentration: The 2024 accounts show a switch to a negative trade creditor balance (-£8k) and a substantial increase in other creditors (£72k vs. £10k in 2023), which could imply unusual payment patterns or accounting classifications affecting creditor reliability.
• Limited scale and shareholder funds: With share capital at only £110 and shareholders’ funds at £102k, the company remains small and relatively thinly capitalised, which limits its buffer against operational or market shocks.

3. Positive Indicators:

• Improved net current assets: Net current assets increased substantially to £102k in 2024 from £26k in 2023, showing an improved short-term financial position.
• Compliance and governance: The company has filed accounts and confirmation statements on time with no overdue filings, indicating good regulatory compliance.
• Stable workforce: The number of employees remained steady at 3 over the past two years, suggesting operational continuity.

4. Due Diligence Notes:

• Investigate the nature and timing of the significant changes in trade and other creditors between 2023 and 2024 to understand if these reflect payment delays, reclassifications, or other operational issues.
• Review cash flow statements (not provided) to assess actual liquidity trends and ability to meet short-term obligations, given the fluctuations in working capital components.
• Confirm the sustainability of revenue streams and contract backlog, especially as turnover and profit figures are not disclosed here.
• Assess the impact of director changes, particularly the recent resignation of one director in mid-2024, on management stability and strategic direction.
• Examine whether related party transactions exist, as the controlling party is a corporate entity (Sea Green Investments Ltd), which may influence financial dealings.