Company Number: 13993098

Analysis Date: 2025-07-20 16:50 UTC

1. Credit Opinion: DECLINE
   Go Compliance Ltd’s financial position exhibits significant weakness, with persistent and increasing net current liabilities and negative shareholders’ funds over the last two years. The company is a micro-entity with limited fixed assets and a working capital deficiency worsening to -£29,487 as of 31 March 2024. This indicates an inability to meet short-term obligations from current assets. Without clear evidence of profitability or incoming cash flows sufficient to reverse this trend, the company’s capacity to service additional credit facilities is highly doubtful.

2. Financial Strength:
   The balance sheet shows total net liabilities of £28,790 at the year-end 2024, deteriorating from £19,643 the previous year. Fixed assets are negligible at under £1,000, and the company relies on current assets, which are insufficient to cover current liabilities. The negative net current assets illustrate a working capital strain, signaling an over-reliance on creditor financing or delayed cash inflows. Shareholders’ funds are negative, implying accumulated losses or continued capital erosion since incorporation in 2022.

3. Cash Flow Assessment:
   The available data points to liquidity issues, with current liabilities exceeding current assets by a substantial margin. The company’s cash conversion cycle and working capital management appear weak, as it cannot cover its short-term debts from liquid resources. No cash flow statements were provided, but the consistent negative net current assets and bad debt expense noted in the accounts suggest cash inflows are insufficient or collections slow. This poses a high risk for timely debt servicing and operational continuity without external support.

4. Monitoring Points:

• Improvement in net current assets and reduction of creditors due within one year.
• Profitability trends and retained earnings development in subsequent filings.
• Cash flow statements when available, specifically operating cash flow adequacy.
• Directors’ strategy for addressing working capital deficits and capital injections if any.
• Timely filing of accounts and statutory returns to avoid compliance risks.
• Any increase in bad debts or provisions that could further weaken financials.