Company Number: 13601903

Analysis Date: 2025-07-20 15:18 UTC

Credit Opinion: CONDITIONAL

GL Tech Consulting Ltd shows some improvement in net assets and shareholders funds over recent periods but remains a micro entity with limited financial resources and negative net current assets. The business has accumulated net current liabilities consistently, indicating potential short-term liquidity pressure. The absence of employees and limited fixed assets suggests a low operating scale and potential dependency on director management and external funding. Credit approval could be considered with conditions such as robust cash flow monitoring, personal guarantees from directors, or limits on credit exposure until stronger liquidity and working capital positions are established.

Financial Strength:

• The company is classified as a micro entity with share capital of only £2.
• Shareholders funds improved from £117 (2023) to £3,859 (2024), indicating some retained earnings or capital injection.
• Fixed assets have slightly increased from £5,869 to £6,143, showing minimal investment in long-term assets.
• Current assets decreased significantly from £8,606 to £4,709, while current liabilities fell from £14,358 to £6,993, improving net current liabilities from -£5,752 to -£2,284.
• Despite improvement, net current liabilities remain negative, indicating current liabilities exceed current assets, a liquidity concern.

Cash Flow Assessment:

• Negative net current assets indicate potential difficulties in meeting short-term obligations from current resources.
• The company has no employees, which may reduce cash outflows but also suggests limited operational scale and revenue generation capacity.
• The reduction in current liabilities suggests some debt repayment or restructuring, but current assets have also declined, which could affect working capital availability.
• No audit has been conducted, which limits verification of cash flow quality and completeness.
• Given the micro-entity status and lack of employee base, cash generation likely depends heavily on director activity and external funding sources.

Monitoring Points:

• Monitor net current asset position to ensure improvement toward positive working capital.
• Track accounts payable and receivable aging to identify liquidity pressures early.
• Review director involvement and any capital injections or external financing to support operations.
• Watch for timely filing of accounts and confirmation statements to ensure compliance and transparency.
• Assess any changes in business scale, asset base, or employee numbers that could impact financial stability.
• Evaluate any new credit facilities or borrowings for impact on liquidity and leverage.