GLM PROPERTY LTD

Executive Summary

GLM Property Ltd is a newly incorporated property investment company currently showing negative net assets and minimal liquidity, primarily funded by director loans. While the company holds tangible and investment property assets with no compliance issues, its solvency and cash flow position present a high risk profile. Further investigation into funding arrangements, asset valuations, and business plans is recommended to assess future viability.

GLM PROPERTY LTD - Analysis Report

Company Number: 15041985

Analysis Date: 2025-07-29 14:58 UTC

1. Risk Rating: HIGH
   Justification: The company shows net liabilities of £8,042 with negative shareholders’ funds and a minimal cash balance of £96 against current liabilities of £51,464. The primary creditor is a loan from directors, indicating reliance on related-party financing. The company is newly incorporated with only one year of financial data, limiting evidence of operational stability.

2. Key Concerns:

• Solvency Risk: Negative net assets and shareholder deficit suggest the company is currently insolvent on a balance sheet basis.
• Liquidity Concerns: Cash on hand is negligible (£96) while there are significant liabilities due within one year (£51,464), raising immediate liquidity risk.
• Operational Sustainability: No employees and minimal operational assets imply the business may be in a start-up or investment phase without ongoing trading income to support liabilities.

3. Positive Indicators:

• Property Asset Base: The company holds tangible fixed assets (£8,646) and investment property valued at £34,680, with directors’ valuation confirming fair values.
• No Filing or Compliance Issues: All statutory filings including accounts and confirmation statements are up to date and not overdue.
• Director Support: Directors have provided loans, indicating willingness to fund the business and potentially support liquidity.

4. Due Diligence Notes:

• Confirm the nature, terms, and repayment schedule of the directors' loans (£51,464), including whether these are interest-bearing and their priority in case of insolvency.
• Investigate cash flow projections and planned revenue streams to assess how the company intends to meet its liabilities given current minimal liquidity.
• Review the investment property valuation methodology and market conditions to validate asset values as a potential source of liquidity or security.
• Clarify the company’s business model and plans to transition from its start-up phase to operational profitability.