GCW CONSULTANCY LTD

Executive Summary

GCW CONSULTANCY LTD operates as a small, micro-entity management consultancy with minimal assets and declining net worth, raising moderate solvency and liquidity concerns. The company remains compliant with filing requirements and maintains stable ownership, but its negative working capital and lack of employees suggest that further due diligence on cash flows and business operations is warranted to assess sustainability risks.

GCW CONSULTANCY LTD - Analysis Report

Company Number: NI675642

Analysis Date: 2025-07-29 15:04 UTC

1. Risk Rating: MEDIUM
   The company shows very low net assets and shareholder funds (£91 in 2024, down from £286 in 2023), indicating thin capitalization. Negative net current assets (£591) and accruals/deferred income (£750) also raise concerns about short-term liquidity. However, no overdue filings or insolvency status mitigate immediate alarm.

2. Key Concerns:

• Declining Net Assets and Working Capital: The net assets have decreased drastically over recent years (from £4,867 in 2021 to £91 in 2024), coupled with negative net current assets, signaling potential financial stress.
• Negative Net Current Assets: Current liabilities exceed current assets by £591 as of 2024, potentially indicating liquidity constraints to meet short-term obligations.
• No Employees and Limited Operating Scale: The company reported zero employees, which could imply limited operational capacity or reliance on external contractors. This may affect business sustainability unless it is a consultancy run solely by the director.

3. Positive Indicators:

• Current Status and Compliance: The company is active with no overdue accounts or confirmation statements, reflecting good regulatory compliance.
• Micro-entity Reporting: Eligibility for micro-entity accounting suggests a small-scale operation with potentially lower overheads.
• Stable Director and PSC Structure: The same director and persons with significant control have maintained consistent shareholding and voting rights, indicating stable governance at the ownership level.

4. Due Diligence Notes:

• Review Cash Flow Trends: Investigate detailed cash flow statements (not provided) to assess liquidity beyond balance sheet snapshot.
• Understand Business Model and Revenue Streams: Clarify how the consultancy generates income without employees and assess client concentration risk.
• Assess Accruals/Deferred Income Composition: Determine nature and timing of accrued/deferred income (£750) to evaluate potential cash inflows or obligations.
• Examine Related Party Transactions: Given related parties hold significant shares and directorship, check for any transactions that may impact financial health.
• Evaluate Going Concern Statement: Confirm if directors have made any disclosures regarding company viability given the low net assets.