Company Number: 13917990

Analysis Date: 2025-07-29 20:35 UTC

1. Risk Rating: MEDIUM
   GC12 Limited is an active private limited company incorporated in 2022, operating in the letting and operating of own or leased real estate. While the company reported positive net assets as of 29 February 2024, its working capital position remains negative, indicating potential liquidity concerns. The company has no employees, which simplifies operational risk but may also signal limited operational activity.

2. Key Concerns:

• Negative Net Current Assets: As of 29 February 2024, current liabilities (£337,939) significantly exceed current assets (£187,052), resulting in net current liabilities of £150,887. This indicates potential cash flow issues in meeting short-term obligations.
• High Reliance on Director and Group Loans: Creditors include £310,615 owed to group undertakings and £25,848 in director loans, suggesting dependence on related party funding which could pose risks if these funds are withdrawn or not renewed.
• Limited Operational Activity: The company has no employees and its main asset is an investment property acquired during the year. This could imply limited revenue generation capability and reliance on property income or asset appreciation, which may be vulnerable to market conditions.

3. Positive Indicators:

• Improved Net Asset Position: The company moved from a net liability position (£897 negative) in 2023 to net assets of £12,727 in 2024, reflecting some improvement in financial stability.
• Timely Filing Compliance: Accounts and confirmation statements are up to date with no overdue filings, demonstrating regulatory compliance and good governance practices.
• Ownership and Control Transparency: The sole director and 100% shareholder is clearly identified with no indications of disqualification or governance issues.

4. Due Diligence Notes:

• Investigate the nature and terms of loans from directors and group undertakings to assess repayment risk and related party dependency.
• Review the cash flow forecasts and rental income projections from the investment property to evaluate sustainability of operations and ability to meet liabilities.
• Confirm if there are any contingent liabilities or off-balance sheet obligations not disclosed that could affect solvency.
• Assess the company’s business model viability given its small scale, no employees, and reliance on property investment.