GC CONSULTING 2023 LIMITED

Executive Summary

GC Consulting 2023 Limited has demonstrated a marked financial improvement within two years of operation, moving from negative net assets to positive equity and working capital. While the company remains small with limited operational scale and reliance on director funding, its current financial position supports a conditional credit approval. Careful monitoring of liquidity, cash flow, and governance will be essential due to the nascent stage and micro entity status.

GC CONSULTING 2023 LIMITED - Analysis Report

Company Number: 14722299

Analysis Date: 2025-07-20 15:50 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   GC Consulting 2023 Limited shows a positive turnaround in financial position within a short operating period since incorporation in 2023. The company moved from net current liabilities and negative shareholders’ funds in its initial year to a net current asset position of £10,990 and positive shareholders’ funds of £11,373 as of March 2025. This improvement indicates growing financial stability and an ability to meet short-term obligations. However, the company remains very small (micro entity) with limited capital (£2 share capital) and no employees reported for the last year, implying limited operational scale and potentially limited cash flow generation. The director’s advances of £8,318 suggest reliance on internal funding. Credit facilities should be extended cautiously, with conditions including regular monitoring of liquidity and profitability, and possibly guarantees or collateral given the nascent stage and small size.

2. Financial Strength:
   The balance sheet is modest but improving. Fixed assets are minimal (£383) relative to current assets (£53,474), indicating the business is not asset-intensive. The current liabilities of £42,484 are covered by current assets, providing positive working capital of £10,990, a significant improvement from previous negative working capital. Shareholders’ funds have turned positive to £11,373 from a deficit of £(3,168) in the prior year, reflecting retained earnings or capital injection. The company’s micro status limits the extent of financial disclosures, but the trend is favorable. The low share capital and reliance on director loans could be a risk if external funding is sought.

3. Cash Flow Assessment:
   The reported net current assets and increase in current assets suggest the company has improved liquidity and short-term cash flow management. However, the absence of detailed cash flow statements limits full assessment. The average employee number is nil, which reduces wage liabilities but may also limit revenue generation capacity. Director advances indicate internal cash injections, which may not be sustainable long-term. Cash flow forecasts and ongoing working capital requirements should be closely scrutinized before increasing credit exposure.

4. Monitoring Points:

• Maintain close watch on working capital and liquidity trends, especially current assets versus current liabilities.
• Monitor director loans and any changes in capital structure or external financing.
• Review turnover and profit development once operational data is available, given the company’s current micro size and limited disclosures.
• Verify timely submission of accounts and confirmation statements to ensure compliance and transparency.
• Watch for changes in ownership or control that could affect governance or financial stability.