GEOBROW LIMITED

Executive Summary

Geobrow Limited has moved from a weak financial position in prior years to a modestly positive net asset status as of the latest accounts, reflecting some improvement. However, liquidity remains tight with minimal cash and reliance on director advances, posing risks to operational stability. The company’s compliance record is satisfactory, but further inquiry into funding sources and cash flow sustainability is recommended before considering investment.

GEOBROW LIMITED - Analysis Report

Company Number: 12918887

Analysis Date: 2025-07-29 12:56 UTC

1. Risk Rating: MEDIUM
   The company has shown improvement from negative net current assets and shareholders’ funds in 2021 and 2022 to positive net current assets (£604) and shareholders’ funds (£604) as of October 2023. However, the absolute values remain low, and cash reserves are minimal (£176), indicating limited liquidity buffer.

2. Key Concerns:

• Liquidity Constraints: Cash on hand is very low (£176), which may not be sufficient to cover short-term obligations or unexpected expenses.
• Dependence on Director Advances: Debtors of £2,365 appear to be director advances (per accounts notes), indicating the company relies on director funding rather than external revenue or financing. This raises questions about operational cash flow.
• Minimal Capital Base and Scale: Share capital is only £10, and the company has no employees currently (average zero in 2023), indicating a very small scale with limited operational infrastructure and potential fragility.

3. Positive Indicators:

• Improved Financial Position: The transition from negative to positive net current assets and shareholders’ funds suggests some recovery or better financial management compared to prior years.
• Compliance and Timely Filings: The company is active, not in liquidation, and filings (accounts and confirmation statement) are up to date with no overdue returns, signaling good regulatory compliance.
• Sole Control by Director: Single director and 75-100% ownership by Miss Georgia Elizabeth Seddon provides clear governance structure and accountability.

4. Due Diligence Notes:

• Clarify Nature of Debtors: Investigate details behind the director’s advances/debtor balances to confirm if these are recoverable and sustainable sources of funding or simply internal loans.
• Cash Flow Analysis: Obtain cash flow statements or management accounts to assess operating cash generation and ability to meet short-term liabilities without director funding.
• Business Sustainability: Review business model, revenue streams, and plans for scaling or increasing liquidity given current minimal assets and lack of employees.
• Director’s Capacity and Intent: Understand the director’s commitment and resources to support ongoing operations, including any contingent liabilities or personal guarantees.