GOLD EXCHANGE DIRECT LIMITED

Executive Summary

GOLD EXCHANGE DIRECT LIMITED shows a high risk profile due to substantial negative net assets and large creditor balances relative to minimal current assets, indicating solvency and liquidity challenges. Despite compliance with filing obligations and consolidated ownership, the financial position and recent governance changes warrant careful further investigation. Investors should scrutinize creditor terms and management stability before considering exposure.

GOLD EXCHANGE DIRECT LIMITED - Analysis Report

Company Number: 14378142

Analysis Date: 2025-07-29 19:47 UTC

1. Risk Rating: HIGH

The company exhibits significant solvency and liquidity risks based on the latest financial data. The net liabilities position and large creditor balances relative to minimal current assets raise concerns about its ability to meet obligations.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: As of 31/12/2024, the company reports net assets of -£118,830, indicating liabilities far exceed assets. This signals financial distress.
• High Creditors vs. Minimal Current Assets: With current liabilities of approximately £24,912 and long-term creditors of £110,000 against current assets of only £1,074, the company faces liquidity constraints.
• Recent Director Changes & Corporate Secretary: Appointment of two new directors in mid-2024 and resignation of the founding director could imply operational instability or governance changes needing further understanding.

3. Positive Indicators:

• No Filing Overdue: The company is up-to-date with both accounts and confirmation statement filings, which suggests compliance with statutory requirements.
• Micro-Entity Filing Status: The company is classified as a micro-entity, indicating a small scale operation with simplified reporting, which might reduce administrative burdens.
• Single Shareholder with Controlling Interest: Hay Wain Group Ltd holds 75-100% ownership and voting rights, implying consolidated control which could facilitate decision-making or recapitalisation if needed.

4. Due Diligence Notes:

• Investigate the nature and terms of the £110,000 long-term creditor liability to assess repayment risk and creditor identity.
• Understand the reason for the significant negative net asset position and if there are plans or capital injections to rectify this.
• Review the rationale and impact of the director changes in July 2024 and whether these indicate strategic shifts or risk of management instability.
• Explore the business model and trading performance, given the minimal current assets and presence of fixed assets (£15,008), to assess operational sustainability.
• Confirm any contingent liabilities or off-balance sheet obligations not captured in the micro-entity accounts.