GARY R OWENS LIMITED

Executive Summary

Gary R Owens Limited presents a high risk profile primarily due to substantial net current liabilities and a negative working capital position, raising liquidity and solvency concerns. Although shareholders’ funds have increased and cash balances improved, the company’s dependence on large investments in associates and concentrated control require further investigation to assess operational and financial stability. Timely regulatory filings support compliance, but detailed due diligence on asset liquidity and management structures is recommended before investment consideration.

GARY R OWENS LIMITED - Analysis Report

Company Number: 13130038

Analysis Date: 2025-07-20 11:02 UTC

1. Risk Rating: HIGH
   The company exhibits a high solvency and liquidity risk profile due to significant net current liabilities and a negative working capital position, raising concerns about its ability to meet short-term obligations.

2. Key Concerns:

• Negative Net Current Assets: As of 31 May 2024, the company has net current liabilities of £278,118, indicating a liquidity shortfall. This is a deterioration from the previous year’s even larger deficit of £528,375.
• Concentration of Control and Limited Capital: The sole director and principal shareholder controls 50-75% of shares and voting rights; combined with a very low share capital (£100), this concentration may limit governance oversight and capital raising capacity.
• Reliance on Fixed Asset Investments: Fixed assets are reported at £885,486, classified as investments in associates. The company’s operational liquidity appears dependent on these investments, which may not be readily convertible to cash to cover current liabilities.

3. Positive Indicators:

• Increasing Shareholders’ Funds: Shareholders’ funds increased from £357,111 in 2023 to £607,368 in 2024, suggesting some growth in net assets.
• Timely Filing Compliance: Both accounts and confirmation statements are filed on time, indicating regulatory compliance and good governance in disclosure.
• Cash Position Improvement: Cash at bank increased significantly from £8,000 to £54,749 year-on-year, which improves short-term liquidity somewhat.

4. Due Diligence Notes:

• Investigate the nature and liquidity of the associate investments valued at £885,486 to determine their realizable value in a short timeframe.
• Review the company’s cash flow forecasts and arrangements for settling significant current liabilities (£345,867), including any repayment plans or refinancing options.
• Examine the director’s role and governance structures given the concentration of control to assess risk around decision-making and financial support.
• Verify the absence of contingent liabilities or off-balance sheet exposures that could further strain liquidity.
• Assess the company’s business model and revenue streams given the SIC code (holding company activities) to understand operational sustainability.