GIBBS BUILDING SOLUTIONS LTD

Executive Summary

Gibbs Building Solutions Ltd is a newly established micro-entity with a positive but modest financial base and no audit requirement. The company demonstrates adequate working capital and equity for its scale, but limited operating history presents inherent risks. Conditional credit approval is recommended, subject to ongoing monitoring of cash flow management and future financial performance.

GIBBS BUILDING SOLUTIONS LTD - Analysis Report

Company Number: 14861331

Analysis Date: 2025-07-20 17:47 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Gibbs Building Solutions Ltd is a very recently incorporated small private limited company operating in the specialised construction sector. The company shows a modest but positive net asset position (£7,753) and net current assets (£7,145), indicating a basic level of working capital adequacy at this early stage. However, the company’s limited operating history (less than one year) and small scale constrain a definitive credit approval. Lending should be conditional upon ongoing monitoring of trading performance and timely filing of future accounts due to the inherent start-up risks and limited financial track record.

2. Financial Strength:
   The balance sheet as of 31 May 2024 shows total fixed assets of £608 (computer equipment), current assets of £36,349 predominantly in trade debtors (£30,673) and cash (£5,676), and current liabilities of £29,204, mostly VAT (£16,622) and taxes/social security (£6,140). The company’s net assets and shareholders’ funds stand at £7,753, indicating a positive equity base but at a low level consistent with a micro-entity. There is a small director loan liability of £1,817. The company has no long-term debt, which reduces financial risk. Overall, the balance sheet is sound but very limited in scale.

3. Cash Flow Assessment:
   Cash on hand (£5,676) provides some liquidity cushion, but the working capital is heavily dependent on timely collection of trade debtors (£30,673), which may present some risk if customers delay payments. Current liabilities are significant relative to cash and net current assets but appear manageable given the level of debtors. The company’s cash flow position should be closely monitored as any delays in receivables or increases in payables could strain liquidity. The absence of bank borrowings at this stage is positive but also implies reliance on director funding or operational cash inflows.

4. Monitoring Points:

• Timely collection of trade receivables to maintain working capital and liquidity.
• VAT and tax liabilities to ensure no build-up of overdue payments.
• Future trading profitability and growth trajectory as reflected in next accounts.
• Director loan account movements and any new external borrowings.
• Compliance with filing deadlines and any changes in company status or control.