GF CABLING LIMITED

Risk Rating: MEDIUM
The company demonstrates long-term solvency but operates with an extremely thin equity base and negligible working capital. The lack of revenue and profit data limits a full risk assessment, but the persistent low net assets and high reliance on a single director warrant caution.

Key Concerns
1. Minimal Equity Cushion – Net assets of £198 provide virtually no buffer against losses or adverse events. Shareholders’ funds have remained below £2,000 for the entire 10-year period, making the company vulnerable to insolvency.
2. Lack of Performance Visibility – As a micro-entity, the company has not filed a profit and loss account, so it is impossible to assess revenue, profitability, or cash-flow generation. Without this data, investors cannot determine whether the business generates sustainable returns.
3. Concentrated Operational Risk – The company has only one director (Xxxxxx Xxxxxxxxname shown to subscribers) and, in the latest year, one employee. This creates significant key-person dependency; disruption to the director could halt operations entirely.

Positive Indicators
- Uninterrupted Compliance – All filings (accounts and confirmation statements) are up to date, with no overdue returns, indicating good administrative discipline.
- Consistent Solvency History – The company has maintained positive net assets every year since at least 2015, with no signs of deterioration in overall net worth.
- Low Absolute Liability Level – Total liabilities (£3,106) are modest and are matched by current assets (£3,140), suggesting that near-term obligations can be met, albeit with minimal headroom.

Due Diligence Notes
- Request Full Accounts – Obtain the company’s micro-entity profit and loss account and directors’ report to understand turnover, gross margin, and net profit trends. This is critical for evaluating operational sustainability.
- Clarify Accruals and Deferred Income – The balance sheet shows £765 in accruals/deferred income (consistent for two years). Investigate the nature of this item – it could represent deferred revenue (positive) or accrued expenses (neutral/negative).
- Assess Director Dependency – Review the director’s other business interests and personal financial resilience. Given the single-employee structure, succession planning and business continuity should be probed.
- Industry Context – SIC 61900 (other telecommunications activities) is broad. Confirm the specific services provided, key contracts, and customer concentration. A micro business in telecoms may rely on subcontracting or one major client.

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