Company Number: 14281509

Analysis Date: 2025-07-29 19:25 UTC

1. Risk Rating: HIGH

Justification: GL CORNWALL LTD exhibits significant solvency and liquidity concerns as evidenced by persistent negative net current assets and net liabilities in prior years, only marginally improved in the latest financial year. The company’s current liabilities exceed current assets, and it carries bank loans, indicating ongoing financial stress. The absence of employees and reliance on a single director also raise operational sustainability issues.

2. Key Concerns:

• Negative working capital: Current liabilities of £11,138 exceed current assets of £4,135 as of 31 August 2024, resulting in net current liabilities of £7,003. This indicates potential short-term liquidity problems.
• Historical accumulated losses: Net assets improved from a deficit of £25,127 in 2023 to a positive £1,754 in 2024, but this is primarily due to reduction in liabilities rather than operational profitability. The company is still in an early stage given incorporation in 2022, with no employees and limited tangible assets.
• Reliance on director and related party loans: Bank loans are recorded (£4,922 current, previously £9,322 non-current), which may represent director or related party financing rather than third-party debt, posing refinancing and governance risks.

3. Positive Indicators:

• Recent improvement in net assets from negative £25,127 to positive £1,754 suggests some progress in addressing financial position.
• No overdue filings: Annual accounts and confirmation statements are filed on time, reflecting regulatory compliance.
• Going concern assertion by directors indicates management believes the company can continue operating, supported by some tangible fixed assets (£8,757).

4. Due Diligence Notes:

• Investigate the nature and terms of the bank loans, including if these are director loans, repayment schedules, and potential for refinancing.
• Review cash flow statements and profit and loss accounts (not provided) to assess operational cash generation capability and profitability trends.
• Confirm plans for growth or operational scaling given absence of employees and limited turnover data.
• Verify the accuracy and completeness of asset valuations, particularly stock and tangible fixed assets.
• Assess the director’s capacity and succession plans to mitigate single-person dependency risk.