GMC PRECISION ENGINEERING LTD

Executive Summary

GMC Precision Engineering Ltd is a newly formed micro-entity demonstrating an initial sound financial position with positive net assets and compliance with filing requirements. However, the limited trading history and modest asset base require further investigation to confirm operational sustainability. Overall, the company presents a low risk profile at this early stage, pending ongoing performance verification.

GMC PRECISION ENGINEERING LTD - Analysis Report

Company Number: SC796146

Analysis Date: 2025-07-20 13:11 UTC

1. Risk Rating: LOW

Justification: GMC Precision Engineering Ltd is a newly incorporated micro-entity with its first set of accounts filed on time and no overdue returns. The financial position as at 31 January 2025 shows positive net current assets (£42,536) and net assets (£89,867), indicating initial solvency and a stable balance sheet. The company is active, with no signs of distress or regulatory non-compliance.

2. Key Concerns:

• Limited trading history: Incorporated in January 2024 and only one financial period reported, limiting the ability to assess operational performance and cash flow sustainability.
• Modest asset base: Fixed assets and current assets are relatively low, reflecting a small scale operation that may be vulnerable to market or operational shocks.
• Reliance on two directors/shareholders: Both directors also hold significant control, which concentrates governance and operational risk.

3. Positive Indicators:

• Compliance: All statutory filings, including accounts and confirmation statements, are up to date with no overdue filings.
• Positive working capital: Net current assets are positive, suggesting the company can meet short-term liabilities.
• Clear governance and transparency: Directors and persons with significant control are clearly identified, with no adverse records.

4. Due Diligence Notes:

• Obtain management accounts or interim financials to assess current trading performance and cash flow beyond the initial period.
• Review the business plan and contracts to understand revenue sources and sustainability.
• Confirm that directors have appropriate experience in engineering and business management.
• Investigate any contingent liabilities or off-balance-sheet obligations not reflected in micro-entity accounts.
• Assess market conditions in the "Other engineering activities" sector (SIC 71129) to gauge external risks.