GLM LOSTOCK LTD

Executive Summary

GLM LOSTOCK LTD exhibits significant solvency and liquidity issues as evidenced by its negative net assets and declining cash balances. While regulatory compliance is maintained, the financial position raises concerns about the company’s ability to meet obligations and sustain operations without additional capital support. Close monitoring and further investigation into liabilities and cash flows are recommended before considering investment.

GLM LOSTOCK LTD - Analysis Report

Company Number: 13937990

Analysis Date: 2025-07-29 20:25 UTC

1. Risk Rating: HIGH
   The company shows a deteriorating financial position with net liabilities increasing significantly over the last financial year. The negative net current assets and shareholders' funds indicate solvency concerns.

2. Key Concerns:

• Solvency Risk: As of 29 February 2024, the company’s net current assets are negative £44,573, and shareholders' funds stand at a negative £44,573, worsening from a marginally negative position the prior year. This suggests the company may be unable to meet its short-term obligations without additional financing.
• Liquidity Issues: Cash balances have dropped sharply from £47,132 in 2023 to £17,856 in 2024, despite an increase in debtors. The significant rise in creditors (£44,224) against limited current assets signals potential cash flow strain.
• Operating Losses and Accumulated Deficit: The growing deficit in the profit and loss account (-£44,573) indicates ongoing losses or write-downs, threatening operational sustainability.

3. Positive Indicators:

• The company is current with its statutory filings, including accounts and confirmation statements, indicating regulatory compliance and governance discipline.
• The business employs a small but growing workforce (7 employees in 2024 vs 5 in 2023), suggesting some operational activity and potential for growth.
• Ownership and control are consolidated under a single director and shareholder, which can support swift decision-making.

4. Due Diligence Notes:

• Investigate the nature and terms of the current liabilities to assess risk exposure and whether these are trade creditors or loans.
• Review cash flow statements or management accounts (if available) to understand cash burn rate and working capital management.
• Clarify the reasons for the significant debtor balance appearing as a negative figure and its collectability.
• Confirm if there are external financing arrangements or shareholder support plans to address the negative equity position.
• Assess the business model viability given the industry (public houses and bars) and the impact of market conditions since incorporation in 2022.