GIBB PROPERTY ONE LTD

Executive Summary

Gibb Property One Ltd shows a weak liquidity position and high leverage relative to its equity, indicating significant solvency risks. While the company holds valuable investment property assets and maintains regulatory compliance, the absence of profitability data and negative net current assets raise concerns about operational sustainability. Further financial detail and cash flow analysis are critical before considering investment.

GIBB PROPERTY ONE LTD - Analysis Report

Company Number: SC736051

Analysis Date: 2025-07-20 11:32 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns. Despite owning substantial fixed assets (investment properties valued at £705,000), its current liabilities vastly exceed current assets, resulting in a negative net working capital of approximately £165,000. The large long-term bank loan (£534,665) compared to minimal equity (£5,727 net assets) highlights high financial leverage and weak equity buffer.

2. Key Concerns:

• Liquidity Issues: Current liabilities (£166,508) far exceed current assets (£1,900), indicating potential difficulties in meeting short-term obligations as they fall due.
• High Leverage: The company’s long-term bank loan (£534,665) is nearly equivalent to the value of fixed assets, with negligible net assets and shareholder funds, reflecting a fragile capital structure.
• Profit and Loss Omission: The accounts omit the profit and loss account and do not provide turnover or profitability data, limiting insight into operational performance and cash flow generation.

3. Positive Indicators:

• Asset Base: Ownership of investment property valued at £705,000 provides a tangible asset base that could support refinancing or sale if needed.
• No Overdue Filings: The company has current filings for accounts and confirmation statements with no overdue penalties, indicating regulatory compliance.
• Stable Directorship: The main director, Mr. Graham Robert Gibb, maintains controlling interest and directorship, potentially ensuring continuity in management.

4. Due Diligence Notes:

• Investigate the company’s cash flow and income streams to assess operational viability and capacity to service debt.
• Request detailed profit and loss statements or management accounts to evaluate profitability and expense trends.
• Clarify terms and covenants attached to the bank loan to understand refinancing risks or potential triggers for default.
• Review directors’ loans and related party transactions for any potential conflicts or financial support mechanisms.
• Confirm market conditions and valuation basis for the investment property to assess asset liquidity and fair value accuracy.