GN DESIGN LTD

Executive Summary

GN DESIGN LTD is a micro-entity with a sound liquidity position and compliant governance, supporting a low-risk profile for solvency and regulatory adherence. However, the decline in net assets and scale constraints warrant ongoing monitoring to ensure operational stability. Overall, the company appears financially stable but should be reviewed periodically for emerging risks related to size and profitability.

GN DESIGN LTD - Analysis Report

Company Number: 13969716

Analysis Date: 2025-07-29 19:35 UTC

1. Risk Rating: LOW
   GN DESIGN LTD shows a positive net asset position and maintains net current assets above zero, indicating sufficient short-term liquidity to meet obligations. The company is compliant with filing deadlines, has stable ownership and management, and operates within a well-defined engineering sector. The micro-entity scale limits complexity and risk exposure.

2. Key Concerns:

• Declining net assets: Net assets decreased from £7,849 in 2023 to £5,508 in 2024, which may indicate reduced retained earnings or losses that should be monitored.
• Reduction in current assets: Current assets fell from £18,634 to £15,470, which could impact liquidity if the trend continues.
• Limited scale and employee base: With only 2 employees and micro-entity status, the company may be vulnerable to operational disruptions or lack of scalability.

3. Positive Indicators:

• Positive working capital: Net current assets remain positive at £4,269, supporting the company’s ability to cover short-term liabilities.
• No overdue filings: Both accounts and confirmation statements are filed on time, indicating good governance and regulatory compliance.
• Directors and PSCs are aligned: The two persons with significant control are also the company’s director and secretary, simplifying decision-making and accountability.
• Fixed assets increased: Fixed assets nearly doubled to £2,227, suggesting investment in operational capacity or equipment.

4. Due Diligence Notes:

• Review the detailed profit and loss account or P&L reserve changes to understand the drivers behind the net asset decline.
• Assess cash flow statements if available to confirm liquidity beyond balance sheet figures.
• Investigate the nature of current liabilities to ensure no hidden or contingent liabilities could pose risk.
• Clarify the company’s business model sustainability given the small size, limited employees, and sector specifics under SIC 71129 (Other engineering activities).
• Confirm no director disqualifications or governance concerns beyond the data provided.