GG-377-020 LIMITED

Executive Summary

GG-377-020 Limited is a newly formed entity with significant investment property assets but burdened by high debt and negative working capital. The company's current financial condition and lack of operating history create high credit risk, particularly around liquidity and debt servicing. Close monitoring of cash flow generation and debt levels is essential before considering credit exposure.

GG-377-020 LIMITED - Analysis Report

Company Number: 15207503

Analysis Date: 2025-07-29 21:15 UTC

1. Credit Opinion: DECLINE
   GG-377-020 Limited exhibits a weak financial position with net liabilities of £31,108 despite holding investment property valued at nearly £495,000. The company is heavily leveraged with £345,012 in long-term bank loans and a significant director's loan of £184,030 classified as current liabilities. Negative working capital of £181,921 indicates a liquidity crunch, raising concerns over the company's ability to meet short-term obligations as they fall due. Given the company is newly incorporated (Oct 2023) and has no operational history or employees, the risk of repayment default is high without additional financial support or proven cash flow generation.

2. Financial Strength:
   The company’s balance sheet is asset-heavy due to investment property; however, this is offset by substantial debt. Shareholders’ funds are negative, reflecting accumulated losses or funding shortfalls. Fixed assets of £495,825 are largely investment property that may be illiquid or subject to market fluctuations. The director's loan (£184,030) is a material current liability, potentially pressuring working capital. There is no evidence of retained earnings or profitability, and no operational turnover data is available. Overall, the balance sheet indicates weak financial strength and high leverage.

3. Cash Flow Assessment:
   Cash on hand is minimal at £2,109, insufficient to cover even a fraction of current liabilities (£184,030). Negative net current assets of £181,921 suggest ongoing cash flow difficulties. No trading or revenue data is provided, and with zero employees, the company’s operating cash inflows are uncertain. Reliance on external financing or director loans is evident, raising concerns about liquidity sustainability. Without positive operating cash flow or liquid reserves, the company is vulnerable to immediate cash demands.

4. Monitoring Points:

• Liquidity position and working capital improvements
• Debt servicing ability on bank loans and director’s loan
• Progress in generating operating revenues and cash flows
• Changes in investment property valuation and market conditions
• Any additional capital injections or refinancing
• Timely filing of future accounts and confirmation statements