GMK PROJECTS LIMITED

Executive Summary

GMK PROJECTS LIMITED is a very young micro-entity demonstrating typical startup financial characteristics: modest turnover, minimal profit, and extremely low asset base. The company maintains compliance and operational activity but faces fragile liquidity and working capital conditions. To ensure future financial health, it should focus on building cash reserves, managing costs, and developing robust financial planning.

GMK PROJECTS LIMITED - Analysis Report

Company Number: 15365347

Analysis Date: 2025-07-29 20:23 UTC

Financial Health Assessment for GMK PROJECTS LIMITED

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1. Financial Health Score: C

Explanation:
GMK PROJECTS LIMITED is a newly incorporated micro-entity in the construction sector with a very limited financial history and minimal asset base. The company shows a small positive net profit but extremely low net assets and working capital. This indicates a fragile financial state typical of a startup phase. While there are no signs of distress or overdue filings, the financial "vital signs" suggest a need for cautious monitoring and strengthening of liquidity and capital.

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2. Key Vital Signs

Metric	Value	Interpretation
Turnover	£40,770	Modest revenue typical for a startup in its first full financial year.
Profit for Period	£1	Barely positive profit; indicates break-even but minimal margin.
Current Assets	£1	Extremely low current asset base; suggests limited cash or receivables.
Net Current Assets	£1	Working capital is positive but negligible, representing fragile liquidity.
Net Assets (Shareholders’ Funds)	£1	Minimal equity base; company is essentially at a financial infancy stage.
Number of Employees	4	Small workforce aligned with micro-entity status.
Filing Status	Up-to-date	No overdue accounts or confirmation statements; good compliance health.

Interpretation: These vital signs show a company that is operational and compliant but financially very lean. The "heartbeat" of cash and assets is extremely weak, indicating the company’s day-to-day financial "pulse" is fragile.

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3. Diagnosis

GMK PROJECTS LIMITED exhibits characteristics typical of a very young micro-entity in the construction industry. The company has started trading recently (incorporated December 2023) and generated some turnover in its first year but with almost negligible profit and minimal assets. This is common for startups which often invest heavily in initial costs such as staff and materials (evidenced by £31,477 staff costs and £8,769 materials cost).

The extremely low current assets and net assets indicate that GMK PROJECTS LIMITED is operating with near-zero financial reserves, which is a symptom of early-stage business development rather than distress. The working capital position is positive but insufficient to absorb any significant financial shocks or delays in cash inflows.

No off-balance sheet liabilities or audit requirements apply, consistent with micro-company exemptions. The single director and sole shareholder, Mr Grzegorz Konarski, holds full control which simplifies governance but also concentrates risk.

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4. Recommendations

To strengthen financial wellness and future viability, the company should consider the following actions:

• Build Cash Reserves:
  Seek to improve cash and short-term assets to create a healthy cash flow buffer. This could be through better payment terms, prompt invoicing, or capital injections from shareholders.

• Cost Management:
  Monitor staff and material costs closely to improve profitability margins. Given the current thin profit, any cost overruns could quickly lead to losses.

• Financial Planning:
  Develop a detailed cash flow forecast and budget aligned with expected projects to identify funding needs early and avoid liquidity crises.

• Growth Strategy:
  Explore ways to increase turnover beyond the initial £40,770 to achieve economies of scale and better absorb fixed costs.

• Governance and Controls:
  Even as a micro-entity, implement basic financial controls and regular management reviews to detect early warning signs of financial distress.

• Consider External Advice:
  Engage with financial advisors or accountants to strengthen accounting practices and explore funding options such as loans or grants for small construction businesses.

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