GDB DEVELOPMENTS LIMITED
Company number 05358519 · Monitor this company
This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.
Financial Health Assessment: GDB Developments Limited
Company: GDB Developments Limited (05358519)
Status: Active, Private Limited Company
Accounts category: Micro
Latest accounts made up to: 31 January 2026
SIC: 43390 – Other building completion and finishing
1. Financial Health Score: D
Grade D – Significant financial distress
The company receives a D because its balance sheet has shown negative net assets in every reported year, with the deficit widening from £3,431 at 31 January 2020 to £78,581 at 31 January 2026. Current liabilities exceed current assets, leaving no working-capital buffer. While the company remains active and its filings are up to date, these are administrative vital signs rather than evidence of underlying solvency. Without intervention, the condition is likely to deteriorate further.
2. Key Vital Signs
| Metric | Latest reading | Interpretation |
|---|---|---|
| Net assets / Shareholders’ funds | –£78,581 | Negative. Liabilities exceed assets; the company is balance-sheet insolvent. |
| Working capital (net current assets) | –£77,951 | Negative. Current liabilities of £827,581 exceed current assets of £749,630 by approximately £78,000. |
| Approximate current ratio | 0.91 : 1 | Below 1.0. For every £1 owed within a year, the company holds roughly 91p in current assets. |
| Asset composition | 100% current assets | No fixed assets are disclosed. There is no long-term asset reserve to fall back on. |
| Creditors due within one year | £827,581 | Exceeds total assets by roughly £78,000. |
| Share capital | £2 | Minimal equity cushion; effectively no owner-funded buffer. |
| Filing compliance | Up to date | Accounts and confirmation statement are not overdue. Positive administrative sign, but not a measure of solvency. |
| Profitability | Not disclosed | The company files filleted micro-entity accounts; the profit and loss account is not delivered to the Registrar. This is a diagnostic blind spot. |
Trend observation: Net liabilities have moved from –£3,431 (2020) to –£48,544 (2019), –£14,548 (2021), –£43,669 (2022), –£61,472 (2023), –£77,747 (2024), –£75,820 (2025) and –£78,581 (2026). The direction since 2020 is materially worsening.
3. Diagnosis
Chronic balance-sheet insolvency with negative working capital
GDB Developments Limited is comparable to a patient who is conscious and mobile but has persistently low blood pressure and no reserves. It continues to trade and meets its filing obligations, yet its liabilities exceed its assets in every year on record. Because all reported assets are current, the company depends heavily on short-term inflows (such as debtor receipts) to meet obligations that are already due or falling due within twelve months.
The absence of fixed assets means there is little in the way of tangible security or long-term value to support a turnaround. The £2 share capital and negative reserves indicate that owners have injected minimal permanent capital, leaving the business reliant on creditor forbearance or short-term funding.
Because the latest accounts are filleted, profitability cannot be assessed from the public record. It is therefore unclear whether the worsening net asset position is driven by trading losses, non-trading costs, or balance-sheet write-downs. This lack of visibility is itself a symptom requiring attention.
4. Recommendations
-
Produce full management accounts
Prepare a profit and loss account and cash flow statement for internal use. This will reveal whether the company is generating operating cash or consuming it, and where costs are concentrated. -
Prepare a short-term cash flow forecast
A 13-week cash flow forecast is essential to understand whether the company can meet creditor payments as they fall due. Treat this as a vital-signs monitor. -
Review the creditor position
Identify the composition of the £827,581 in creditors due within one year (e.g., trade suppliers, HMRC, connected parties). Prioritise critical suppliers and statutory liabilities, and open early dialogue with any creditor where payment may be delayed. -
Consider additional capital
The directors or persons with significant control could consider introducing further capital or converting existing loans into equity to restore positive net assets and improve the balance-sheet position. -
Strengthen working capital management
Tighten credit control, accelerate invoicing and debtor collection, and review work-in-progress or stock levels to release cash more quickly. -
Monitor solvency and seek professional advice
The board should regularly assess whether the company can pay its debts as they fall due. If there is any doubt, advice from a licensed insolvency practitioner should be obtained promptly to understand available options (for example, a company voluntary arrangement or other restructuring) and the directors’ responsibilities while the company is balance-sheet insolvent.