GB & SG CONSTRUCTION LTD

Executive Summary

GB & SG CONSTRUCTION LTD is a newly formed micro-entity with negative net assets and net current liabilities, indicating weak financial health and liquidity challenges. The company lacks sufficient working capital to reliably service credit, leading to a credit recommendation of decline at this stage. Close monitoring of cash flow and capital injections is essential if credit terms are to be reconsidered in the future.

GB & SG CONSTRUCTION LTD - Analysis Report

Company Number: 14673484

Analysis Date: 2025-07-29 18:14 UTC

1. Credit Opinion: DECLINE
   GB & SG CONSTRUCTION LTD is a very recently incorporated micro-entity with limited trading history (approximately one year). The financial statements show net current liabilities of £20,080 and negative net assets of £1,866, indicating a weak balance sheet and insufficient working capital. The company's ability to meet short-term obligations appears compromised. Given the lack of historical profitability, minimal asset base, and negative net working capital, the company currently lacks the financial strength to reliably service debt or credit facilities without additional security or guarantees.

2. Financial Strength:
   The company’s fixed assets stand at £18,214, which is minimal and likely represents basic equipment or setup costs. Current assets are £22,414, but these are outweighed by current liabilities of £42,494, leading to a net current liability position of £20,080. Negative net assets of £1,866 reflect accumulated losses or initial start-up costs exceeding capital introduced. Shareholders' funds mirror the net asset figure, confirming no hidden reserves. The company is clearly in an early stage with limited capitalization and no retained earnings.

3. Cash Flow Assessment:
   Current liabilities significantly exceed current assets, implying liquidity constraints and a potential dependency on external financing or the sole shareholder’s cash injections to meet short-term commitments. The small scale (one employee) limits operational complexity but also points to limited revenue-generating capacity. There is no evidence of positive cash flow from operations yet, which raises concerns about the company’s ability to service any new or existing credit without additional cash support.

4. Monitoring Points:

• Quarterly review of current assets versus current liabilities to monitor improvements in working capital.
• Tracking cash flow statements and bank balances monthly to assess liquidity trends.
• Review of any new contracts or revenue streams that might improve profitability and cash generation.
• Monitoring director’s financial support or additional capital injections as a buffer.
• Watch for timely filing of accounts and returns to ensure compliance and transparency.