GO TRUCKING SOLUTIONS LIMITED

Executive Summary

GO Trucking Solutions Limited is an early-stage company showing signs of significant financial stress, including negative working capital and shareholders' funds within its first reporting period. While compliance and asset holdings provide some stability, the company’s reliance on director loans and negative equity present high solvency and liquidity risks. Further investigation into related-party funding and operational viability is essential before considering investment.

GO TRUCKING SOLUTIONS LIMITED - Analysis Report

Company Number: 14718775

Analysis Date: 2025-07-29 18:12 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks, with net current liabilities and negative equity within the first 14 months of operations. These factors indicate potential challenges in meeting short-term obligations and sustaining operations without additional funding or restructuring.

2. Key Concerns:

• Negative Net Current Assets: Current liabilities (£512,483) substantially exceed current assets (£189,881), resulting in a working capital deficit of £322,602. This creates immediate liquidity pressure.
• Negative Shareholders’ Funds: Equity is negative at £135,324, showing the company is technically insolvent on a balance sheet basis, which is a red flag for creditors and investors.
• Director-Related Loans: The company owes £354,013 to related parties (companies controlled by the director) interest-free and repayable on demand. This related-party debt indicates reliance on director funding to maintain operations, which may not be sustainable if the director withdraws support.

3. Positive Indicators:

• Tangible Fixed Assets: The company holds £187,378 in motor vehicles, indicating tangible assets that could potentially be leveraged or sold to improve liquidity.
• No Overdue Filings: Both account and confirmation statement filings are up to date, indicating compliance with statutory requirements and good governance practices.
• Clear Ownership and Control: Ownership and control are centralized and transparent, with a single director and PSC, which may facilitate swift decision-making.

4. Due Diligence Notes:

• Investigate the terms, maturity, and potential repayment plan for the director-related loans and any other related-party transactions.
• Review the company’s cash flow forecasts and business plan to assess the likelihood of achieving positive cash flow and returning to solvency.
• Examine revenue generation and contract pipeline in the freight transport sector to evaluate operational sustainability.
• Confirm the valuation and liquidity of the tangible fixed assets (motor vehicles) and whether they are encumbered or available as collateral.
• Assess the director’s background and financial capacity to continue supporting the company if required.
• Verify any off-balance sheet liabilities or contingent liabilities not disclosed in the accounts.