GED HOMES LTD

Executive Summary

GED Homes Ltd is a start-up real estate letting company with limited operating history and fragile liquidity, reflected by a negative working capital position and reliance on director support. While fixed assets provide some collateral value, short-term creditor pressures require close monitoring. Credit approval is recommended on a conditional basis, with emphasis on cash flow management and confirmation of ongoing financial backing.

GED HOMES LTD - Analysis Report

Company Number: NI690022

Analysis Date: 2025-07-29 21:18 UTC

Credit Opinion: CONDITIONAL APPROVAL
GED Homes Ltd is a newly incorporated private limited company engaged in letting and operating its own or leased real estate. The company shows modest net assets of £20k as at 31 July 2023, with a significant current liabilities position exceeding current assets by £227k. The going concern statement relies on director support to meet short-term liabilities. While the investment property is valued at £251k, the large short-term creditor balance of £354k raises concerns about liquidity and working capital management. Approval for credit facilities should be conditional on receiving detailed plans for cash flow management and confirmation of ongoing director support.

Financial Strength:
The balance sheet reflects a small equity base (£20k) supported mainly by non-distributable reserves. Fixed assets (investment property) represent the bulk of the asset base at £251k. The lack of independent property valuation and reliance on director valuations introduces some valuation risk. Current liabilities of £354k outweigh current assets of £127k, resulting in a negative working capital position of £227k. This indicates tight liquidity and potential short-term funding pressure. Overall financial strength is fragile due to the short operating history, negative working capital, and reliance on director backing.

Cash Flow Assessment:
The company holds cash of £127k but has creditors due within one year amounting to £354k, indicating a mismatch between liquid assets and short-term obligations. Debtors are negligible (£254) and unlikely to provide meaningful near-term liquidity support. The company’s going concern position depends heavily on director support to manage cash flows and cover liabilities as they fall due. There is no detailed cash flow statement available, but the financials suggest potential liquidity risk unless ongoing funding is assured.

Monitoring Points:

• Monitor liquidity closely, especially current ratio and working capital movements.
• Review director support arrangements and any related party loan agreements for sustainability.
• Obtain independent valuation of investment property to validate asset values.
• Track rental income and debtor ageing to ensure timely cash inflows.
• Watch for any overdue filings or changes in company status that could signal distress.