Company Number: 14194608

Analysis Date: 2025-07-20 18:26 UTC

1. Risk Rating: MEDIUM
   GM Midlands Ltd exhibits moderate solvency and liquidity based on the latest micro-entity accounts; however, the significant increase in current liabilities within the last year and reduction in net assets suggest emerging financial pressures that warrant caution.

2. Key Concerns:

• Sharp increase in current liabilities from £32,452 (2023) to £238,278 (2024), which may indicate cash flow stress or increased short-term debt reliance.
• Decline in net assets from £74,371 to £61,391 over the same period, reflecting possible erosion of equity and financial stability.
• Limited operational history since incorporation in mid-2022 and average employee count of 1, raising concerns about business scale and sustainability.

3. Positive Indicators:

• The company remains active with all statutory filings up to date and no overdue accounts or confirmation statements.
• Net current assets remain positive at £61,483, indicating current assets still exceed short-term liabilities.
• Ownership concentrated in a single controlling shareholder with full voting rights, potentially allowing for streamlined decision-making.

4. Due Diligence Notes:

• Investigate reasons behind the large increase in current liabilities during the 2023-24 financial year, including nature and terms of creditors.
• Review cash flow statements and operating performance (not available here) to assess ongoing liquidity and operational viability.
• Confirm no adverse director conduct or regulatory compliance issues given recent director appointment in May 2025.
• Assess business model robustness and contract pipeline given the company's short operational timeline and SIC codes indicating specialized construction/demolition.