GG-319-205 LIMITED

Executive Summary

GG-319-205 LIMITED is a newly incorporated micro-entity in the real estate letting sector, showing a minor working capital deficit and negative equity typical of start-ups. While it faces early financial fragility, there is no indication of severe distress. Focused management of cash flow, working capital, and building positive equity will be critical to strengthening its financial health and ensuring sustainable growth.

GG-319-205 LIMITED - Analysis Report

Company Number: 14935050

Analysis Date: 2025-07-29 15:34 UTC

Financial Health Assessment for GG-319-205 LIMITED

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1. Financial Health Score: D

Explanation:
The company shows a marginally negative net asset position (£-800) and working capital deficit, albeit very small. Given this is a newly incorporated micro-entity with limited operational history, this score reflects early-stage financial strain but not critical distress. The lack of profits or retained earnings and negative equity suggests caution as the company is not yet financially robust.

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2. Key Vital Signs

Metric	Value	Interpretation
Net Current Assets	£-800	A slight working capital deficit ("symptom of distress") indicates the company may struggle to cover short-term obligations from liquid assets.
Net Assets (Equity)	£-800	Negative equity ("sign of early financial strain") means liabilities exceed assets by a small margin.
Current Assets	£404,711	Healthy absolute level of assets available to cover short-term liabilities.
Current Liabilities	£405,511	Obligations due within one year slightly exceed current assets.
Shareholders Funds	£-800	Reflects accumulated losses or initial start-up costs exceeding initial capital contributions.
Company Size	Micro	Simplicity of accounts and limited regulatory burden, but also limited operational scale.
Incorporation Date	June 2023	Very young company, less than 2 years old, in start-up phase.
Industry SIC	68209 - Real estate letting and operating	Sector can be capital intensive with potential for variable cash flow cycles.

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3. Diagnosis

The financial "vitals" of GG-319-205 LIMITED reveal a company in the very early stages of development, with a slight imbalance between its current assets and liabilities resulting in a small working capital deficiency. This "early symptom" is not uncommon in start-ups, especially in the real estate sector where upfront costs can be significant, and income streams may not have fully stabilized.

The negative net assets and shareholders' funds position indicate the company has incurred more liabilities than its assets cover, which could be due to initial investment in assets or operating expenses before generating positive cash flow. The absence of audit requirements and the micro-entity status mean the accounts provide a simplified snapshot but lack detailed profitability or cash flow data.

Given the company was incorporated in mid-2023 and commenced trading immediately, it is likely still building its asset base and customer relationships. The director's control over 75-100% of shares also suggests a closely held business structure, which can facilitate focused decision-making but places responsibility on the director to monitor liquidity carefully.

Overall, the company shows signs typical of a start-up with early financial "symptoms" but no acute distress such as insolvency or excessive debt. The financial health is fragile but not critical, warranting close monitoring and proactive management.

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4. Recommendations

To improve financial wellness and strengthen the company’s financial health, consider the following actions:

• Improve Working Capital Management:
  Aim to increase current assets relative to liabilities. This could involve accelerating debtor collections, negotiating better payment terms with suppliers, or managing inventory efficiently if applicable.

• Build Positive Equity:
  The company needs to generate retained earnings through profitable operations or consider additional capital injections to buffer against early-stage losses and negative net assets.

• Cash Flow Monitoring:
  Establish detailed cash flow forecasts to anticipate funding needs and avoid liquidity crunches. Healthy cash flow is akin to a strong pulse sustaining the business.

• Cost Control:
  Review operating expenses to ensure they align with revenue growth. Minimizing burn rate is critical in early phases to prolong the runway towards profitability.

• Strategic Growth Planning:
  Develop a clear business plan targeting sustainable revenue generation in the real estate letting sector, identifying key market segments and competitive advantages.

• Governance and Compliance:
  Maintain timely filing of accounts and confirmation statements to avoid penalties and demonstrate corporate responsibility, which supports creditworthiness.

• Seek Professional Financial Advice:
  Early engagement with accountants or financial advisors can help diagnose potential hidden issues and optimize tax and funding strategies.

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