G.B.SERVICES BRIXHAM LTD

Executive Summary

G.B.Services Brixham Ltd demonstrates ongoing financial strain with negative net assets and net current liabilities over three years, reliant on increasing director loans for liquidity. While the company complies with filing requirements and maintains positive cash balances, its financial position poses high solvency and liquidity risks. Further due diligence on operational viability and cash flow is advised before considering investment.

G.B.SERVICES BRIXHAM LTD - Analysis Report

Company Number: 13243993

Analysis Date: 2025-07-20 12:53 UTC

1. Risk Rating: HIGH
   The company exhibits signs of financial distress, including negative net assets and net current liabilities, suggesting insolvency risks. Reliance on director loans to fund operations further exacerbates liquidity concerns.

2. Key Concerns:

• Negative net assets and net current liabilities for three consecutive years (2022–2024), indicating ongoing solvency issues.
• Significant director loan balance (£63,826 as of 2024) increasing year-on-year, showing dependence on related-party financing to maintain operations.
• Limited tangible assets (£366) and no evidence of revenue or profit data due to exemption from filing profit and loss accounts, restricting assessment of operational sustainability.

3. Positive Indicators:

• The company has complied with statutory filing deadlines for accounts and confirmation statements, demonstrating regulatory compliance and good governance in this respect.
• Positive cash balances (£62,237 in 2024) indicate short-term liquidity is currently maintained, albeit insufficient against current liabilities.
• Small workforce (average 2 employees) and micro-entity accounting treatment reduce administrative complexity and overhead costs.

4. Due Diligence Notes:

• Investigate the company’s cash flow projections and business model viability given persistent losses and reliance on director loans.
• Review any underlying contracts or assets supporting the director loan and repayment terms to understand creditor risks.
• Obtain management accounts or profit and loss data, if available, to assess revenue trends and operational performance beyond the balance sheet.
• Confirm the director’s plans for recapitalisation or restructuring to restore positive equity and improve financial stability.