GG-762-596 LIMITED

Executive Summary

GG-762-596 LIMITED shows significant financial challenges, mainly due to negative working capital and equity deficits driven by large current liabilities and property valuation adjustments. Immediate focus on liquidity management, debt restructuring, and asset optimisation is critical to stabilise financial health and support sustainable growth. The company is in a vulnerable but potentially recoverable state with appropriate strategic actions.

GG-762-596 LIMITED - Analysis Report

Company Number: 14959203

Analysis Date: 2025-07-29 14:13 UTC

Financial Health Assessment of GG-762-596 LIMITED

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1. Financial Health Score: D

Explanation:
The company shows significant financial distress, primarily due to negative net current assets and net liabilities, indicating urgent attention is needed. While fixed assets and investment properties appear substantial, the heavy current liabilities and negative shareholder equity weigh heavily on overall financial health.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Fixed Assets	153,813	Stable base of tangible and investment properties.
Current Assets	25,398	Low liquid assets; majority tied in debtors.
Cash	2,844	Very limited cash reserves, indicating tight liquidity.
Debtors	22,554	Significant receivables, but questionable liquidity.
Current Liabilities	215,082	High short-term debt; a critical red flag.
Net Current Assets (Working Capital)	-189,684	Negative; symptoms of severe short-term financial strain.
Net Assets (Equity)	-35,871	Negative equity; balance sheet weakness.
Shareholders Funds	-41,389	Negative largely due to a large fair value reserve deficit.
Profit & Loss Account	5,418	Small positive retained earnings, but overshadowed by liabilities.

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3. Diagnosis: Financial Condition

• Liquidity Crisis (Healthy Cash Flow Absent):
  The company exhibits symptoms akin to a patient with poor circulation: cash on hand is very low (£2,844), and current liabilities far exceed current assets, resulting in a negative working capital of nearly £190k. This means the company may struggle to meet short-term obligations, risking operational disruption without immediate cash inflows or refinancing.

• Balance Sheet Stress (Negative Equity):
  Negative net assets (-£35,871) indicate the company’s liabilities exceed its total assets. This is a sign of financial distress or undercapitalization, akin to a patient showing signs of organ strain. The negative fair value reserve (-£41,389) suggests marked-down investment property values have impacted equity negatively, reflecting a potential impairment or market weakness.

• Asset Base & Receivables:
  The company holds investment properties valued at £150,000 and tangible assets of about £3,800, forming a stable asset base. However, a large portion of current assets is in debtors (£22,554), which may not be immediately liquid. This could be a symptom of slow collections or credit risk.

• Growth Stage / Early Operation:
  Incorporated in mid-2023, the company is young, which may explain some financial imbalance due to startup costs, initial investments, or capital structure development. No employees reported, implying a lean structure but also limited operational scale.

• Related Party Creditors & Director Loan:
  Significant current liabilities include a director’s loan account (£59,593) and other creditors linked to companies with similar "GG-" prefixes, suggesting inter-company funding. This is typical in early-stage or group structures but also indicates dependency on internal financing.

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4. Recommendations: Improving Financial Wellness

• Urgent Liquidity Management:
  Improve cash flow by accelerating debtor collections and negotiating extended payment terms with creditors to reduce pressure on working capital. Consider short-term financing or credit lines to bridge liquidity gaps.

• Capital Injection or Debt Restructuring:
  Infuse additional equity to restore positive net assets or restructure liabilities. Engage with the director and related creditors to convert some debt into equity or longer-term loans.

• Asset Review & Valuation:
  Reassess investment properties for potential sale or refinancing to unlock cash. The large negative fair value reserve suggests market or valuation impairments; professional advice on property strategy could stabilize balance sheet.

• Operational Strategy Development:
  Since the company has no employees and limited turnover data, focus on building a sustainable business model with positive cash generation. Avoid further fixed costs until liquidity improves.

• Financial Monitoring & Reporting:
  Establish regular financial health checks (monthly cash flow forecasts, debtor aging analysis) to detect symptoms of distress early and take corrective action promptly.

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Medical Analogy Summary:

GG-762-596 LIMITED is currently exhibiting symptoms of acute financial distress, particularly liquidity deficiency and balance sheet weakness—akin to a patient with poor circulation and compromised organ function. Without timely intervention, the risk of operational failure increases, but with structured financial management and potential capital support, recovery prospects improve significantly.

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