GO ROUND LTD

Executive Summary

GO ROUND LTD is an early-stage engineering design company with a weak financial position characterized by negative equity, limited cash, and negative working capital. The company currently lacks the financial strength and cash flow generation to support credit risk without external financial support. Close monitoring of liquidity improvements and operational cash flow will be critical before considering credit facilities.

GO ROUND LTD - Analysis Report

Company Number: 15195696

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

1. Credit Opinion: DECLINE
   GO ROUND LTD is a newly incorporated private limited company (incorporated October 2023) with its first financial statements for the year ending October 2024. The company shows net liabilities of £4,294 and negative working capital of £7,731. Cash holdings are minimal (£221) compared to current liabilities (£7,952). The company is loss-making as reflected by negative reserves and has no significant tangible assets, only intangible assets (patent) valued at £3,437 net of amortisation. The directors indicate reliance on continued financial support to maintain going concern, which raises concerns about operational cash flow sufficiency and financial independence. Given the early stage of trading, negative net assets, and weak liquidity, the company currently lacks the financial strength and cash flow stability to service debt or commercial credit risk without additional guarantees or funding.

2. Financial Strength: WEAK
   The balance sheet reveals a fragile financial position. The company’s net current liabilities position indicates potential liquidity stress, as current liabilities exceed current assets by a significant margin. Share capital is nominal (£100), and accumulated losses exceed equity, resulting in negative shareholder funds. Fixed assets consist solely of intangible patents with limited liquidation value. There is no evidence of tangible asset backing or significant cash reserves to support borrowing. The financial statements are unaudited and prepared under small company exemptions, limiting transparency. Overall, the financial strength is insufficient for unsecured credit facilities at this stage.

3. Cash Flow Assessment: POOR
   Cash on hand is minimal (£221), and current liabilities due within one year total £7,952, leading to a net current liability position of £7,731. There is no reported profit or retained earnings, indicating the company is currently not generating positive operating cash flow. The directors’ note on going concern dependence on financial support suggests external funding or shareholder loans are currently the primary source of cash. Without evidence of strong operating cash generation or committed funding, the company’s capacity to meet short-term obligations or loan repayments is limited.

4. Monitoring Points:

• Monitor future annual accounts for improvement in net current assets and positive cash flow from operations.
• Review subsequent filings for any new borrowings, shareholder loans, or capital injections that improve liquidity.
• Track any changes in directors or significant control that might indicate shifts in financial backing or management capability.
• Observe the company’s ability to meet its next filing deadlines and maintain active status with no overdue filings.
• Assess progress on commercial contracts or revenue generation that may enhance financial stability.