GML PLUMBING & HEATING LTD

Executive Summary

GML Plumbing & Heating Ltd exhibits a solid financial position with strong liquidity and increasing shareholder funds, supported by consistent statutory compliance. However, its small scale of operations and reduction in fixed assets warrant further inquiry to assess operational sustainability. Overall, the company presents a low risk of insolvency but requires additional due diligence on operational and governance aspects.

GML PLUMBING & HEATING LTD - Analysis Report

Company Number: 14309641

Analysis Date: 2025-07-29 19:13 UTC

1. Risk Rating: LOW
   The company demonstrates a strong net asset position relative to its liabilities, with a notable increase in net current assets and shareholders’ funds over the past two years. It maintains timely filing of statutory returns, and there are no indications of insolvency or regulatory non-compliance.

2. Key Concerns:

• Limited operational scale: As a micro-entity with only two employees, growth potential and operational resilience may be limited.
• Fixed asset reduction: Fixed assets decreased from £20,260 to £15,195 which could indicate asset disposal or underinvestment in plant and equipment, possibly impacting operational capacity.
• Concentration risk: The company appears to be a single-director entity, which may present governance and succession risks.

3. Positive Indicators:

• Strong liquidity: Current assets increased significantly to £71,518 against current liabilities of £21,205, yielding net current assets of £50,313, suggesting comfortable short-term liquidity.
• Growing equity base: Shareholders’ funds more than doubled from £28,869 in 2023 to £63,671 in 2024, indicating retained profitability or fresh capital injection.
• Compliance: No overdue accounts or confirmation statements, demonstrating adherence to statutory deadlines and good governance.

4. Due Diligence Notes:

• Verify the nature and source of current assets, particularly the large increase in 2024, to confirm sustainability (e.g., trade receivables vs. cash).
• Investigate the reason for the reduction in fixed assets and assess whether the company has adequate operational equipment for its plumbing and heating activities.
• Review director background and any related party transactions given the single-director structure.
• Confirm the company’s revenue and profitability trends, as income statement data is not publicly filed due to micro-entity status.
• Assess contract pipeline and client diversification to understand business sustainability.