GENUINE CAPITAL ADVISORS LIMITED

Executive Summary

Genuine Capital Advisors Limited is currently facing high financial risk characterized by persistent negative working capital and shareholders’ funds, raising concerns about its ability to meet obligations. While compliance and operational classification provide some stability, the company’s financial position warrants careful further investigation into its liquidity and operational sustainability. Investors should conduct detailed due diligence on cash flows, liabilities, and director support before proceeding.

GENUINE CAPITAL ADVISORS LIMITED - Analysis Report

Company Number: 13712738

Analysis Date: 2025-07-29 15:56 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks as evidenced by persistent negative net current assets and shareholders' funds, deteriorating from a positive position in 2021 to increasingly negative figures by the end of 2024. This financial position indicates it is currently unable to meet short-term obligations without external support.

2. Key Concerns:

• Negative Working Capital: Net current liabilities of £17,146 as of 31 December 2024, worsening from previous years, suggesting ongoing liquidity challenges.
• Negative Shareholders’ Funds: Equity is substantially negative at £17,146, reflecting accumulated losses or liabilities exceeding assets.
• Single Director and Shareholder Concentration: The sole director and 100% shareholder is the same individual, which may raise governance and control risks, especially given the financial difficulties.

3. Positive Indicators:

• Current Active Status and Compliance: The company is active with no overdue filings for accounts or confirmation statements, indicating regulatory compliance to date.
• Micro-Entity Filing Status: The company benefits from simplified accounting requirements, reducing administrative burden.
• Stable Industry Classification: Focused on management consultancy activities, which typically have low capital intensity and can be flexible in operations.

4. Due Diligence Notes:

• Examine Cash Flow Statements: To assess the operational cash generation capability and understand the nature of liabilities causing negative working capital.
• Investigate Nature of Current Liabilities: Clarify if liabilities are trade payables, loans, or other financial obligations and their maturity profile.
• Assess Director’s Financial Support: Determine if the director or related parties have provided or plan to provide financial support to sustain operations.
• Review Business Plan and Future Projections: Evaluate sustainability and plans to return to profitability or improve financial position.
• Confirm No Undisclosed Liabilities or Contingent Risks: Given the negative equity, verify potential off-balance sheet liabilities or pending claims.