GG-108-989 LIMITED

Executive Summary

GG-108-989 LIMITED is currently facing high financial risk characterized by persistent negative net assets and a working capital deficit driven by reliance on directors’ loans. While regulatory compliance is maintained and the company remains active, liquidity and solvency concerns pose material risks to investors. Further due diligence into directors’ loans and operational cash flows is essential to assess the company’s sustainability.

GG-108-989 LIMITED - Analysis Report

Company Number: 14156274

Analysis Date: 2025-07-29 20:58 UTC

1. Risk Rating: HIGH
   The company exhibits significant and persistent negative net assets and shareholders' funds over multiple years, indicating solvency concerns. The position has deteriorated from -£2,775 in 2023 to -£2,958 in 2024. Current liabilities, primarily directors’ loans, exceed current assets by a substantial margin, reflecting liquidity stress.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The company's net liabilities position suggests it is technically insolvent on a balance sheet basis, which poses a material risk to creditors and investors.
• Liquidity Deficit: Current liabilities (£6,101 in 2024) nearly double current assets (£3,143), resulting in a net current liability position of -£2,958, indicating potential cash flow constraints.
• Reliance on Directors’ Loans: All current liabilities are directors’ loan accounts, which may indicate the company depends on related-party funding rather than external financing. This could raise concerns about sustainability and governance.

3. Positive Indicators:

• No Overdue Filings: Both accounts and confirmation statements are up to date, reflecting regulatory compliance and good governance on reporting obligations.
• Active Status: The company is active and not in liquidation, administration, or receivership, suggesting ongoing operations.
• Small Company Exemption: The company qualifies for small company reporting exemptions, simplifying compliance and potentially lowering administrative costs.

4. Due Diligence Notes:

• Review Directors’ Loan Agreements: Understand terms, repayment schedules, and whether these loans are expected to be converted to equity or repaid to assess financial risk and governance structure.
• Examine Cash Flow Statements: Detailed cash flow analysis is needed to evaluate operational liquidity and ability to meet short-term obligations.
• Assess Business Model Viability: Investigate the underlying real estate activities, revenue streams, and future profitability prospects given persistent losses and negative equity.
• Confirm No Hidden Liabilities: Verify there are no contingent liabilities or off-balance sheet obligations that could exacerbate financial stress.
• Investigate Directors’ Backgrounds: While no disqualifications are noted, understanding directors’ experience and history may provide insight into management capability.