GIGI EVENTS LIMITED

Executive Summary

GIGI EVENTS LIMITED exhibits a negative equity position and negative working capital, indicating weak financial health and liquidity pressures. Without evidence of profitability or improved cash flows, the company poses a credit risk and is not currently suitable for credit extension. Ongoing monitoring of financial performance and liquidity is essential to reassess creditworthiness in the future.

GIGI EVENTS LIMITED - Analysis Report

Company Number: 13557853

Analysis Date: 2025-07-29 20:09 UTC

1. Credit Opinion: DECLINE
   GIGI EVENTS LIMITED shows a negative net asset position of £8,317 as at 31 March 2024, indicating that liabilities exceed assets. The working capital is negative (£32,249 current assets vs. £40,566 current liabilities), suggesting tight liquidity and potential difficulty in meeting short-term obligations. The company is micro-sized and has not included a profit and loss account, limiting insight into profitability, but the deteriorating equity from positive £52 in 2023 to negative in 2024 raises concerns about ongoing financial viability. Given these factors and limited financial history since incorporation in 2021, the company does not currently demonstrate sufficient financial strength or liquidity to confidently service debt or credit facilities.

2. Financial Strength:
   The balance sheet reveals a weak financial structure. Shareholders’ funds shifted from a marginally positive £52 in 2023 to a deficit of £8,317 in 2024, reflecting accumulated losses or increased liabilities. The company relies almost entirely on current assets with no fixed assets reported, and current liabilities have increased significantly in the latest year. The lack of retained earnings and negative net assets undermine financial resilience, increasing risk in adverse market conditions.

3. Cash Flow Assessment:
   Current assets are predominantly short-term and relatively low at £32,249, while current liabilities stand at £40,566, resulting in a negative working capital of £8,317. This indicates potential cash flow constraints and limited liquidity buffer to cover immediate payables. The company employs only 2 staff and operates in event catering, an industry sensitive to economic cycles and discretionary spending. The absence of reported profitability or cash flow statements impedes thorough cash flow analysis, but the negative working capital strongly suggests liquidity challenges.

4. Monitoring Points:

• Monitor subsequent filing of profit and loss accounts to assess profitability trends.
• Track quarterly or monthly cash flow statements to evaluate liquidity improvements or deterioration.
• Watch for changes in current liabilities and any growth in working capital deficits.
• Assess director actions on capital restructuring or additional funding to shore up equity.
• Monitor industry conditions and potential impact on revenue, given event catering’s cyclicality.