GEACH AGGREGATES LIMITED

Executive Summary

Geach Aggregates Limited shows signs of financial distress with net liabilities and a working capital deficit as at February 2024. Although the company remains compliant with filing requirements and operationally stable in terms of staffing, significant solvency and liquidity concerns warrant careful scrutiny. Further due diligence is recommended to assess the sustainability of the business and risk exposure to creditors and investors.

GEACH AGGREGATES LIMITED - Analysis Report

Company Number: 13169052

Analysis Date: 2025-07-29 21:07 UTC

1. Risk Rating: HIGH

   The company exhibits significant solvency and liquidity risks as evidenced by its negative net assets and net current liabilities in the most recent financial year.

2. Key Concerns:

   • Negative Net Assets and Shareholders’ Funds: As of 29 February 2024, the company reports net assets of -£24,160, a material decline from £2,585 the previous year, indicating erosion of the company's equity and potential insolvency concerns.
   • Negative Net Current Assets (Working Capital Deficit): Current liabilities (£88,910) exceed current assets (£60,742) by £28,168, implying potential cash flow difficulties to meet short-term obligations.
   • Deterioration from Prior Year: Compared to the 2023 accounts, the company’s financial position has worsened considerably, with long-term creditors increasing and a reduction in fixed assets, signaling operational or financial stress.

3. Positive Indicators:

   • Filing Compliance: The company is up to date with statutory filings, including accounts and confirmation statements, suggesting good governance in terms of regulatory compliance.
   • Stable Employment: The average number of employees has remained steady at 3, indicating operational continuity.
   • Micro-entity Status: Being a micro-entity may reduce administrative burdens and reflect a smaller scale of operations potentially limiting exposure.

4. Due Diligence Notes:

   • Investigate Causes of Negative Equity: Review detailed accounts or management commentary to understand the drivers behind the net asset decline and whether this is due to operating losses, write-downs, or creditor pressure.
   • Examine Creditor Terms and Cash Flow: Assess the nature of the £88,910 current liabilities and £32,833 long-term liabilities to determine maturity profiles and risk of default.
   • Assess Director and Management Capacity: Confirm the background and experience of the sole director for capability to manage turnaround or financial recovery.
   • Review Future Trading Prospects: Given the liquidity strain, inquire about ongoing contracts, revenue pipeline, and plans to restore solvency.
   • Confirm No Undisclosed Related Party Transactions: Given the small share capital (£2) and shareholder funds deficit, investigate whether intercompany or director loans exist that may affect financial stability.

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