GOM SOLUTIONS LIMITED

Executive Summary

GOM SOLUTIONS LIMITED shows a stable fixed asset base but suffers from poor liquidity and negative equity, indicating financial strain and potential solvency risks. Immediate actions to improve working capital, restructure debt, and strengthen equity are recommended to restore financial health and ensure long-term viability.

GOM SOLUTIONS LIMITED - Analysis Report

Company Number: 14007539

Analysis Date: 2025-07-29 20:59 UTC

Financial Health Assessment: GOM SOLUTIONS LIMITED

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1. Financial Health Score: D

Explanation:
The company exhibits some concerning "symptoms" of financial distress, primarily a negative net asset position and high liabilities relative to current assets. Although it holds significant fixed assets, the balance sheet reveals liquidity stress and undercapitalization, warranting a below-average financial health grade.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Fixed Assets	£450,000	Stable asset base, significant long-term investment
Current Assets	£24,000	Very low, indicating limited short-term liquidity
Current Liabilities	£476,000	High short-term obligations, potentially stressful
Net Current Assets (Working Capital)	-£2,021	Negative working capital, a sign of liquidity crunch
Creditors > 1 Year	£476,000	Long-term debt burden remains unchanged
Net Assets (Equity)	-£28,021	Negative equity, showing liabilities exceed assets
Shareholders Funds	-£28,021	Reflects net asset deficit, risky financial position

Vital Signs Interpretation:

• The company’s fixed assets are healthy and stable, indicating investment in tangible property (likely real estate given SIC codes).
• Current assets are very low compared to current liabilities, which is a classic "symptom" of poor liquidity or cash flow problems.
• Negative net current assets (working capital) suggest the company may struggle to meet short-term obligations without relying on further financing.
• The persistent negative net asset position (shareholders' funds) is the most alarming sign, indicating the company's total liabilities exceed its total assets—a symptom of financial distress or undercapitalization.
• No employees are reported, suggesting possibly a holding or investment entity rather than an operating business.

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3. Diagnosis

GOM SOLUTIONS LIMITED presents signs of financial strain despite being a relatively young company (incorporated 2022). The large fixed assets indicate investment in real estate or property holdings, consistent with its SIC classification. However, the company's liquidity is weak, as evidenced by negative working capital, and the negative net asset value is a critical red flag, suggesting the company owes more than it owns.

This "symptom" often indicates that the company is either over-leveraged or has incurred losses not detailed in the micro-entity accounts (which provide limited disclosures). The stable fixed assets paired with negative equity could imply that the company financed its property holdings largely through debt, which may be sustainable if income from the assets covers interest and repayments—but this cannot be confirmed without cash flow or profit & loss data.

The absence of employees and the micro-entity filing status indicate a small-scale, possibly investment-focused business with minimal operational costs. However, the ongoing high liabilities require close monitoring to avoid solvency risks.

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4. Recommendations

To improve financial wellness and stem symptoms of distress, GOM SOLUTIONS LIMITED should consider the following actions:

• Improve Liquidity Management: Explore ways to increase current assets, such as accelerating receivables collection or securing short-term financing to ease the working capital deficit.
• Debt Restructuring: Negotiate with creditors to restructure or extend repayment terms on the £476,000 long-term liabilities to reduce short-term pressure.
• Capital Injection: Consider equity infusion from the sole shareholder or third parties to restore positive net assets and strengthen the balance sheet.
• Regular Financial Monitoring: Implement monthly cash flow forecasts to detect liquidity issues early and plan accordingly.
• Profitability Review: Even though micro-entity accounts limit disclosures, assessing income from property holdings and reducing unnecessary costs can help improve retained earnings and equity over time.
• Professional Advice: Engage financial or insolvency advisors to evaluate the sustainability of current debt levels and explore potential options if distress worsens.

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