GLOVER & DAUGHTER LTD

Executive Summary

Glover & Daughter Ltd faces significant liquidity and solvency challenges evidenced by persistent negative working capital and minimal shareholder equity. While regulatory compliance is maintained and the business remains active, the financial data suggests high risk from an investment perspective without further assurance on cash flow management and operational sustainability. Further due diligence is recommended to clarify ongoing viability and financial support mechanisms.

GLOVER & DAUGHTER LTD - Analysis Report

Company Number: SC682011

Analysis Date: 2025-07-29 15:32 UTC

1. Risk Rating: HIGH
   Glover & Daughter Ltd shows persistent net current liabilities and minimal net assets over the past four financial years, indicating ongoing liquidity and solvency challenges. The company’s micro-entity scale and limited financial resources elevate its risk profile.

2. Key Concerns:

• Negative Working Capital: The company consistently reports net current liabilities (negative net current assets) ranging from £7,001 to £12,280, suggesting it may struggle to meet short-term obligations as they fall due.
• Minimal Shareholders’ Funds: Shareholders’ funds have declined from £2,270 in 2021 and 2022 to just £204 in 2023, indicating erosion of equity and potential capital deficiency.
• Single Director and Control Concentration: The company is managed and controlled solely by Ms Kirsty Glover, who owns 75-100% of shares and voting rights. This concentration may pose governance and operational risks, especially given the very small size (one employee) and lack of independent oversight.

3. Positive Indicators:

• Compliance with Filings: The company is up to date with both accounts and confirmation statement filings, showing regulatory compliance and no evidence of administrative neglect.
• Active Status and No Insolvency Proceedings: The company remains active and there are no indications of liquidation, administration, or receivership, suggesting it is continuing operations.
• Micro-Entity Reporting: Utilization of micro-entity accounting provisions reduces administrative burden and may reflect a lean operational model appropriate for a small television production activity.

4. Due Diligence Notes:

• Cash Flow and Creditors: Investigate the company’s cash flow statements (not provided) to assess how it manages liquidity given the negative working capital. Confirm if there are any overdue or disputed creditors.
• Revenue and Profitability Trends: Obtain more detailed profit and loss information to understand if losses are ongoing and the company’s path to profitability or break-even.
• Director’s Plans and Financial Support: Clarify if the sole director or related parties provide financial support (e.g., loans or capital injections) to sustain operations.
• Business Model Sustainability: Review contracts, client base, and pipeline in the television production sector to assess operational viability and growth prospects.
• Potential Contingent Liabilities: Verify whether there are any off-balance sheet liabilities or contingent obligations that could worsen the financial position.