Company Number: 13030959

Analysis Date: 2025-07-20 19:15 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   GB Autocare Ltd shows improved financial position and working capital over the last two years, indicating growth and better liquidity. However, the company carries a significant amount of long-term creditors (£53,654) relative to net assets (£20,066), including loans from directors and other creditors, which may increase financial risk. The company’s ability to service debt appears adequate currently but is reliant on maintaining or increasing cash flow and profitability. Approval is recommended with conditions to monitor debt servicing and creditor aging closely.

2. Financial Strength:
   The balance sheet reflects a small but positive net asset base (£20,066) and a strong increase in net current assets from £1,409 (2023) to £62,857 (2024), largely due to increased inventories (£50,000) and cash (£27,709). Tangible fixed assets have decreased slightly to £10,863, reflecting depreciation. The increase in creditors after one year to £53,654 mainly consists of bank loans (£3,200), other creditors (£50,000), and director loans (£454). The company is small, with only 2 employees, indicating a lean operation. The equity base is modest but has grown from prior year.

3. Cash Flow Assessment:
   Cash at bank has increased significantly from £203 to £27,709, improving liquidity. The company holds substantial inventory which may tie up working capital but also suggests active trade. Current liabilities remain manageable at £14,852 versus current assets of £77,709, providing a healthy current ratio (>5). However, the sizeable long-term liabilities require ongoing cash flow vigilance to ensure timely repayments and avoid solvency pressure. The company does not appear to have overdue filings, reducing compliance risk.

4. Monitoring Points:

• Monitor debt servicing capacity, especially repayment of long-term creditors and director loans.
• Track inventory turnover to ensure stock does not become obsolete or tie up excessive working capital.
• Watch profitability trends and cash flow generation in future accounts to confirm financial sustainability.
• Maintain timely filing of accounts and returns to avoid compliance penalties.
• Assess any changes in director loans or creditor terms that could impact liquidity.