GILTWICK LIMITED

Executive Summary

Giltwick Limited presents significant credit risk due to persistent negative equity, insufficient cash reserves, and a working capital deficit. The company’s financial position shows no improvement since inception, indicating limited capacity to service debt. Credit facilities are not recommended without substantial changes in financial health or external support.

GILTWICK LIMITED - Analysis Report

Company Number: 13456157

Analysis Date: 2025-07-29 17:11 UTC

1. Credit Opinion: DECLINE
   Giltwick Limited exhibits negative equity and persistent net current liabilities, indicating a weak financial position and limited ability to meet short-term obligations. The company has negligible cash reserves (£263) against current liabilities (£964 in 2024), resulting in a working capital deficit of £701. This financial profile raises significant concerns about its capacity to service any incremental credit facility or debt. The lack of profit figures (income statement not provided) and minimal assets further impair confidence in repayment ability. The sole director and 100% owner has not demonstrated financial improvements over the three years of trading, reflecting either limited business traction or operational challenges. Given these factors, credit approval is not recommended without substantial mitigating information or guarantees.

2. Financial Strength:
   The balance sheet shows persistent net current liabilities and negative shareholders’ funds over the past three years, worsening from -£517k in 2023 to -£702k in 2024. Current assets are minimal and consist almost entirely of cash, with no debtors or fixed assets reported. This indicates a lack of tangible asset backing or receivables to support liquidity. The company’s capital structure is weak, with no retained earnings and ongoing losses implied by the shrinking equity. Overall, the financial strength is poor, with no buffer for shocks or downturns.

3. Cash Flow Assessment:
   Cash on hand is extremely limited (£263) and insufficient to cover current liabilities of £964. Net current liabilities indicate negative working capital, meaning the company relies on external funding or creditor leniency to meet obligations. There is no evidence of trade debtors or stock that could be converted into cash quickly. This suggests ongoing cash flow stress, limiting operational flexibility and increasing default risk. The company’s cash position and working capital require urgent improvement to sustain operations.

4. Monitoring Points:

• Monitor any changes in cash balances and current liabilities to assess liquidity trends.
• Track the filing of future accounts for any improvements in profitability or asset acquisition.
• Watch for changes in director or ownership that might bring new capital or management expertise.
• Review any new credit facilities or guarantees that could alleviate liquidity constraints.
• Assess the company’s ability to generate revenue or secure contracts in its IT consultancy and design sectors to improve cash inflows.