GODSTON PROJECTS LIMITED

Executive Summary

GODSTON PROJECTS LIMITED exhibits signs of financial distress with negative net assets and no current assets, reflecting an inactive or minimally active operation. To regain financial health, the company must address its liabilities, initiate revenue-generating activities, or consider formal dormancy. Without corrective action, the financial outlook remains fragile.

GODSTON PROJECTS LIMITED - Analysis Report

Company Number: 13552631

Analysis Date: 2025-07-20 17:48 UTC

Financial Health Assessment for GODSTON PROJECTS LIMITED

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1. Financial Health Score: D

Explanation:
The company shows persistent net current liabilities and negative net assets, though on a very small scale due to micro-entity status. The absence of current assets and consistent liabilities represent symptoms of financial distress or inactivity. The financial position is fragile, with no buffer for unexpected costs or operational needs.

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2. Key Vital Signs

Metric	2024	2023	Interpretation
Current Assets	£0	£0	No liquid assets or receivables reported, indicating no cash or near-cash resources.
Current Liabilities	£259	£159	Small but increasing short-term debts or obligations.
Net Current Assets	-£259	-£159	Negative working capital, indicating inability to cover short-term debts with current assets.
Total Net Assets	-£259	-£159	Negative equity position, indicating liabilities exceed assets, a key symptom of distress.
Shareholders’ Funds	-£259	-£159	Negative shareholder equity suggests accumulated losses or capital erosion.
Number of Employees	0	0	No employees, possibly indicating very limited operational activity or a dormant state.

Interpretation:
The "vital signs" of the company's financial health reveal a lack of cash or receivables to meet even minimal liabilities, and a gradual worsening of net asset position. The scale is small but negative trends persist over 3 years. This suggests the company may be inactive, or at best, struggling to generate operational cash flow.

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3. Diagnosis

The financial condition of GODSTON PROJECTS LIMITED resembles a patient with chronic low-level financial distress. The company is operating with no current assets and increasing current liabilities, leading to a negative net asset position. No employees and micro-entity filing status suggest minimal or no trading activity.

The negative net assets indicate that if the company were to settle all liabilities today, it would be unable to cover them with its assets. The company may be in a holding pattern, possibly maintaining minimal obligations but not generating revenue or profits. This "symptom" pattern aligns with a business that is either in early start-up phase with no activity to date, or effectively dormant but not formally classified as such.

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4. Recommendations

To improve financial wellness and move towards a healthier financial profile, consider the following specific actions:

• Inject Capital or Reduce Liabilities: Address the negative net asset position by additional capital contributions or negotiating to reduce or defer current liabilities. This will improve working capital and solvency.
• Generate Operational Cash Flow: Initiate business activities or projects that produce revenue to create a healthy cash flow. Without income, liabilities will accumulate, worsening financial health.
• Monitor and Manage Expenses: Keep overheads minimal and ensure any expenses generate value or revenue. Avoid unnecessary costs that deepen the deficit.
• Consider Dormancy Status: If the company is not trading, consider formally applying for dormant status to reduce filing and compliance costs.
• Review Business Model or Strategy: The current financial "symptoms" indicate limited activity. Reassess the business plan to identify viable revenue streams or consider restructuring.
• Maintain Compliance: Continue timely filing of accounts and returns to avoid penalties and maintain good standing with Companies House.

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