Company Number: 13764630

Analysis Date: 2025-07-29 15:53 UTC

1. Risk Rating: HIGH
   Gerancy Limited exhibits significant solvency and liquidity risks as evidenced by a substantial negative net asset position and negative working capital at the latest reported financial year-end.

2. Key Concerns:

• Negative Net Assets: The company reported net liabilities of £7,000 as of 30 November 2023, a marked deterioration from net assets of £4,255 the prior year, indicating erosion of shareholder equity.
• Severe Liquidity Shortfall: Current liabilities of £9,134 vastly exceed current assets of £1, resulting in net current liabilities of £9,133. This suggests an inability to meet short-term obligations without additional financing.
• Reliance on Director’s Loan: The director’s loan account increased notably to £7,844 from £1,411, implying dependence on director funding to sustain operations, which may not be sustainable or guaranteed.

3. Positive Indicators:

• No Overdue Filings: All statutory accounts and confirmation statements are up to date, demonstrating compliance with regulatory requirements.
• Active Website and Contact Details: The company maintains an active online presence and valid contact information, indicating ongoing operations and engagement.
• Single Controlling Director and PSC: Clear ownership structure with Xxxxxx Xxxxxxxxname shown to subscribers holding 75-100% shares and voting rights, which may facilitate swift decision-making.

4. Due Diligence Notes:

• Investigate the nature and terms of the director’s loan account to assess the risk of withdrawal or demands for repayment.
• Review cash flow statements and management accounts post-November 2023 to understand whether the liquidity position has improved or deteriorated further.
• Assess business viability given the significant net asset erosion and negative working capital, including any planned capital injections or restructuring efforts.
• Confirm the accuracy of fixed asset valuation and consider impairment risks given the depreciation schedule.
• Evaluate the company’s revenue trends and contract pipeline given the SIC classifications in educational support and management consultancy.