GCM DEVELOPMENT SOLUTIONS LIMITED

Executive Summary

GCM Development Solutions Limited is a small, newly formed management consultancy showing a sound initial financial position with positive working capital and shareholder equity. The company’s limited trading history warrants a cautious credit approach with modest lending and close monitoring of financial performance and compliance filings. Early signs of liquidity and capitalization are favorable for short-term credit risk.

GCM DEVELOPMENT SOLUTIONS LIMITED - Analysis Report

Company Number: 15161681

Analysis Date: 2025-07-20 16:47 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   GCM Development Solutions Limited is a newly incorporated small private limited company (incorporated September 2023) engaged in management consultancy activities. The latest abridged unaudited accounts show modest but positive net current assets and net assets of £36,063, indicating initial capitalization and working capital adequacy. However, the company’s short operating history and limited financial data constrain full credit confidence. Credit approval is recommended with conditions: ongoing monitoring of financial performance and timely filing of accounts to ensure business viability and growth trajectory. Lending limits should be modest initially, reflecting early stage risk.

2. Financial Strength:
   The company reports total current assets of £74,870 comprising cash of £33,113, debtors of £37,757, and stock of £4,000, against current liabilities of £38,807. This results in positive net current assets of £36,063 and matching net assets/shareholders’ funds of £36,063. The balance sheet shows a healthy short-term liquidity position with working capital to cover current liabilities by nearly double. Equity is entirely shareholder funded with minimal debt, indicating no leverage risk at this stage. The absence of fixed assets is consistent with a consultancy business model.

3. Cash Flow Assessment:
   Current cash of £33,113 provides a reasonable liquidity buffer for operational needs. Debtors of £37,757 suggest active client invoicing, although collection efficiency should be monitored closely going forward. The small amount owed by directors (£57) is insignificant. Positive net current assets and cash balances suggest the company can meet short-term obligations without reliance on external borrowing. However, no historic cash flow or profit and loss data is available to assess operational cash generation or sustainability.

4. Monitoring Points:

• Timely submission of next accounts and confirmation statement to maintain compliance and transparency.
• Debtor aging and cash collection effectiveness to prevent working capital strain.
• Profitability trends and cash flow generation as trading matures beyond start-up phase.
• Any material changes in shareholder structure or director appointments that could affect governance or control.
• Emerging credit exposures or contingent liabilities not yet disclosed.