GBRW LIMITED
Company number 03041652 · Monitor this company
This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.
Credit Assessment: GBRW LIMITED (03041652)
1. Credit Opinion: CONDITIONAL
GBRW Limited demonstrates several positive indicators—30-year operating history, consistent profitability, and a strong cash position—but the conditional rating reflects concerns around the company's modest absolute size, high leverage relative to equity, and significant recent balance sheet movements that lack transparency due to audit-exempt filing status.
Key concerns: - Shareholders' funds of £57,822 provide a thin capital base for debt service coverage - Gearing ratio of 3.2x (total liabilities to equity) is elevated for a financial services entity - Trade debtors surged from nil to £118,036 year-on-year without explanation - Other creditors nearly tripled from £56,872 to £143,883—counterparty concentration risk unknown - Unaudited accounts limit verification of financial position
Positive factors: - Established trading history since 1995 - Net profit of £13,635 in FY2025 (consistent with prior years) - Cash of £116,397 represents 48% of total assets - Positive working capital of £54,821 - No filings overdue; clean regulatory standing
2. Financial Strength
Balance Sheet Summary (FY2025):
| Metric | £ | Assessment |
|---|---|---|
| Total Assets | 242,612 | Modest |
| Total Liabilities | 184,790 | High relative to equity |
| Net Assets | 57,822 | Thin buffer |
| Share Capital | 282 | Minimal—owners have not reinvested |
| Share Premium | 16,646 | Historical capital injection |
| Retained Earnings | 40,894 | Accumulated from profits |
Trajectory: Net assets have recovered from a low of £20,611 (FY2022) to £57,822 (FY2025), which is positive. However, the FY2025 level remains below the FY2018-2019 peak of approximately £59,000, suggesting the business has not materially grown its capital base over seven years.
Leverage: The liabilities-to-equity ratio of 3.2x is concerning. While current assets cover current liabilities (current ratio of 1.3x), the margin is slim. A 15% deterioration in debtor recoveries would eliminate the net current asset position.
Capital Structure: Share capital of just £282 indicates owners have minimally invested, with growth funded through retained earnings and trade/other creditors. This limits loss-absorption capacity.
3. Cash Flow Assessment
Liquidity Position:
| Metric | FY2025 | FY2024 | Movement |
|---|---|---|---|
| Cash | 116,397 | 111,485 | +4,912 |
| Trade Debtors | 118,036 | 0 | +118,036 |
| Current Assets | 239,611 | 117,555 | +122,056 |
| Current Liabilities | 184,790 | 76,869 | +107,921 |
| Working Capital | 54,821 | 40,686 | +14,135 |
Cash Conversion: The £13,635 profit does not fully explain the £122k increase in current assets. The appearance of £118k in trade debtors—representing 49% of total assets—raises questions about revenue recognition, related-party receivables, or collection risk. Cash only increased by £4,912 despite £13,635 profit, suggesting cash is tied up in debtors.
Creditor Dependency: Other creditors of £143,883 (78% of total liabilities) represent a significant concentration. Without understanding the nature of these obligations (deferred revenue, related-party loans, trade payables), assessing repayment risk is difficult.
Debt Service Capacity: With only £13,635 net profit and £57,822 equity, the company's capacity to service additional debt is limited. A standard term loan of £50k at 8% would require ~£6,000 annual interest alone—consuming nearly half of annual profits.
4. Monitoring Points
| Metric | Current Level | Threshold | Rationale |
|---|---|---|---|
| Trade Debtors | £118,036 | >£60,000 | Investigate nature and recoverability; ageing analysis essential |
| Other Creditors | £143,883 | >£100,000 | Clarify composition; related-party exposure risk |
| Current Ratio | 1.30x | <1.10x | Working capital buffer is thin |
| Gearing (Debt/Equity) | 3.2x | >4.0x | Excessive leverage risk |
| Net Profit | £13,635 | <£5,000 | Profitability threshold for debt service |
| Cash Balance | £116,397 | <£50,000 | Minimum liquidity floor |
Recommended Conditions for Facility Approval: 1. Personal guarantees from PSCs (Coates and Rex) given minimal share capital 2. Debtor ageing report to assess the £118k trade debtor composition and collectability 3. Creditor breakdown to understand the nature of £143k other creditors 4. Financial covenants requiring minimum cash of £50k and current ratio above 1.1x 5. Facility size limit not exceeding £30k without additional security