GG RELIANCE LTD

Executive Summary

GG Reliance Ltd is a micro-entity with significant financial distress evidenced by increasing net liabilities and negative working capital. The company relies on unsecured director advances and shows no operational scale or cash generation, raising serious concerns about its ability to meet credit obligations. Given these factors, credit facilities are not recommended without substantial improvement in financial health and operational viability.

GG RELIANCE LTD - Analysis Report

Company Number: 13183792

Analysis Date: 2025-07-29 20:11 UTC

1. Credit Opinion: DECLINE

GG Reliance Ltd demonstrates weak financial health with persistent negative net assets and net current liabilities. The company's balance sheet shows accumulated losses and increasing director loans with no employees or operational scale, reflecting a lack of business activity or growth. The credit risk is heightened by the absence of profitability, minimal current assets (£4), and significant current liabilities (£1,894), mainly owed to the director interest-free. This indicates reliance on director funding rather than operational cash flow. Without evidence of revenue generation or plans for improving financial position, the company’s ability to service debt or meet commercial obligations is highly questionable.

2. Financial Strength:

• Net liabilities worsened from (£1,299) in 2023 to (£2,003) in 2024, indicating an increasing deficit in equity.
• The company carries no fixed assets or tangible capital, with only nominal current assets (£4).
• Current liabilities, mostly due within a year, are substantial relative to assets and primarily represent unsecured director advances.
• No employees or operational turnover likely reflect a dormant or non-trading status despite active registration.
• The micro-entity status limits disclosure but the available data signifies poor capital structure with no retained earnings or reserves.

3. Cash Flow Assessment:

• Cash and liquid assets are negligible, insufficient to cover short-term liabilities.
• Negative net current assets (£-1,890) imply working capital deficiency.
• Reliance on director advances as the main source of funds suggests liquidity risk if director support ceases.
• No evidence of cash inflows from operations or external financing to support ongoing obligations.

4. Monitoring Points:

• Track changes in net current assets and net liabilities to detect any improvement or further deterioration.
• Monitor director loan balances and terms, as these are critical to the company’s liquidity.
• Review any filed profit and loss accounts or turnover data if available in future filings.
• Observe the filing of next accounts and confirmation statements for signs of business activity or compliance.
• Assess any changes in company status or director appointments that may signal restructuring or insolvency risk.