Company Number: 14356327

Analysis Date: 2025-07-29 12:18 UTC

1. Credit Opinion: DECLINE. G&M Cleaning Construction Ltd presents significant financial weakness with persistent net liabilities and negative shareholders' funds over the last three years since incorporation in 2022. The company’s inability to generate positive net current assets and its increasing current liabilities raise serious concerns about its capability to meet short-term obligations and service any additional credit facilities. The lack of profitability confirmation, coupled with a negative equity position, signals high credit risk. Without evidence of turnaround or improved liquidity, extending credit is not advisable at this stage.

2. Financial Strength: The company is classified as a micro-entity with minimal filing requirements, but its financials show deteriorating financial health. As of 30 September 2024, net liabilities stand at £5,876, worsening from £1,826 the previous year. Current liabilities more than double current assets (£10,387 vs. £5,211), resulting in negative working capital of £-5,176. Shareholders’ funds are negative, indicating the company’s liabilities exceed total assets. Despite a small increase in employees (from 1 to 3), there is no evidence of asset growth or capital injection to improve the balance sheet.

3. Cash Flow Assessment: Cash balances are not separately disclosed for 2024 but were low at £2,040 in 2023, insufficient to cover short-term liabilities. The increasing current liabilities and negative net current assets suggest liquidity strain and poor working capital management. The company’s cash flow position is precarious, with creditors exceeding available current assets, implying potential difficulties in meeting immediate financial obligations and servicing debts.

4. Monitoring Points:

• Track progress on improving net current assets and reducing current liabilities.
• Monitor cash flow statements closely to assess liquidity improvements.
• Watch for any capital injections or shareholder funding to restore equity.
• Observe the company’s ability to generate profits and positive retained earnings.
• Keep an eye on trade creditor payment patterns and any supplier credit restrictions.
• Review any changes in management strategy or operational restructuring that may affect financial resilience.