GEEMM LTD

Executive Summary

GEEMM LTD exhibits stable and improving financial health with positive net assets and strong working capital relative to liabilities. The business is small but well-managed with no immediate credit concerns. The company is suitable for low-value credit facilities with ongoing monitoring focused on liquidity and profitability.

GEEMM LTD - Analysis Report

Company Number: 12553389

Analysis Date: 2025-07-29 20:59 UTC

1. Credit Opinion: APPROVE (Low Risk) GEEMM LTD is a micro private limited company operating in the specialised chemist retail sector. The company is active with no overdue filings and has shown stable financial health over recent years. The net assets have increased modestly from £4,798 in 2023 to £6,256 in 2024, indicating a positive but small capital base. Current liabilities are low (£1,515 in 2024) relative to current assets (£7,771), resulting in a comfortable working capital position. The single director is a locum pharmacist, suggesting operational knowledge aligned with the business sector. No adverse director conduct records or insolvency indicators are present. Given the company’s modest scale and micro-entity filing status, it is considered low risk with sufficient liquidity to service small-scale credit facilities.

2. Financial Strength: The balance sheet reflects a small but improving equity base, with net assets rising by approximately 30% year-on-year from £4,798 to £6,256. Shareholders’ funds equal net assets, demonstrating no long-term debt or external equity. Current assets primarily consist of cash, debtors, or stock valued at £7,771, with current liabilities at a manageable £1,515. There are no fixed assets reported, which is typical for micro entities in retail sectors reliant on inventory and receivables. The company’s micro classification and small employee count (1 employee) align with its limited operational scale and financial footprint.

3. Cash Flow Assessment: The company maintains positive net current assets (working capital) of £6,256 as of April 2024, an increase from £4,798 the previous year. This indicates sufficient short-term liquidity to meet obligations as they fall due. The reduction in current assets from £9,529 to £7,771 while current liabilities fell more significantly from £4,731 to £1,515, suggests improved creditor management or reduced short-term borrowing. No significant overdrafts or borrowing appear on the balance sheet, implying reliance on internal funds or trade credit. Cash flow appears steady, but limited data on profit and loss restricts deeper analysis of operating cash generation.

4. Monitoring Points:

• Continued monitoring of working capital trends to ensure liquidity remains strong given the small asset base.
• Profitability data when available, to confirm positive cash flow generation and earnings sustainability.
• Watch for any increase in current liabilities that could strain liquidity given the low capital base.
• Monitor director changes or any related party transactions that might affect financial stability.
• Track volume and value of trade receivables and inventory to avoid stock obsolescence or bad debts.