GLOBAL SURPLUS LIMITED

Credit Opinion: CONDITIONAL The credit opinion is CONDITIONAL. While the company exhibits a very strong, low-leveraged balance sheet with excellent liquidity, the micro-entity filing status means no Profit & Loss account has been disclosed. Without visibility over trading performance, revenue generation, and actual cash conversion, it is impossible to definitively assess debt serviceability from the filed accounts alone. Approval of any credit facility would require the submission of full management accounts to verify cash flow generation. Furthermore, the pending resignation of a 50% shareholder and co-director introduces operational and ownership continuity risks that must be clarified.

Financial Strength The balance sheet displays robust health, characterized by minimal leverage and steady capital accumulation. Net assets have grown consistently from £70,384 in 2020 to £89,257 in 2025, representing a 26.8% increase over five years. With share capital at a nominal £2, this growth is entirely driven by retained profits, indicating long-term profitability. Total liabilities stand at just £12,308 against total assets of £101,565, resulting in a very low gearing ratio. The asset base is highly liquid, with fixed assets representing a negligible £577; the business is essentially funded by current assets (likely cash and trade debtors) and equity, leaving it highly resilient to balance sheet stress.

Cash Flow Assessment Liquidity is exceptionally strong. The company reports net current assets of £88,680 against current liabilities of £12,308, yielding a current ratio of approximately 8.2:1. The business has more than sufficient working capital to meet its near-term obligations. However, because the accounts are prepared under FRS 105 (Micro-entity regime), cash flow metrics cannot be directly verified from the filing. The absence of a P&L means we cannot see the split between cash and debtors within current assets, nor can we ascertain the operating cash flow margins. While the growth in retained earnings implies positive cash generation, the actual quantum of free cash available to service new debt remains unproven without management information.

Monitoring Points * Director Resignation: John Andrew Garside is recorded as resigning on 13 July 2026. As he holds 25-50% of shares and voting rights, his departure will significantly alter the control structure and may trigger a share buyback or redistribution. The remaining director, David Wheelwright, must demonstrate that the business can sustain operations and management post-departure. * Financial Visibility: Ongoing requirement for full management accounts (including P&L and cash flow statements) to be provided annually, compensating for the lack of trading data in the micro-entity filings. * Asset Composition: The composition of the £100,988 current assets should be monitored. If predominantly trade debtors, the liquidity position is reliant on collection efficiency; if predominantly cash, the business is highly liquid but may be under-utilizing capital. * Trading Scale: With only 2 employees, the business has minimal operational overhead, but this also means key-person dependency is high.