GOMARELI LTD

Executive Summary

Gomareli Ltd exhibits strong financial health with steadily growing net assets and a robust liquidity position, reflecting sound management of short-term obligations and retained earnings accumulation. While limited by micro-entity reporting, the company shows no symptoms of financial distress and maintains good governance practices. To sustain growth, enhanced financial transparency and continued cash flow vigilance are recommended.

GOMARELI LTD - Analysis Report

Company Number: 13162895

Analysis Date: 2025-07-29 20:54 UTC

Financial Health Assessment of Gomareli Ltd (as at 31 December 2024)

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1. Financial Health Score: B

Explanation:
Gomareli Ltd demonstrates a stable and improving financial position typical of a micro-sized wholesale business. The company’s net assets and working capital have grown steadily over recent years, indicating good financial resilience and operational stability. However, the absence of detailed profitability data limits a full assessment of operational efficiency and cash flow health, preventing an “A” grade.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Current Assets	47,994	Adequate short-term resources to cover liabilities
Current Liabilities	18,018	Manageable short-term obligations
Net Current Assets (Working Capital)	29,976	Strong liquidity buffer; “healthy cash flow” indicator
Net Assets (Shareholders’ Funds)	29,226	Positive equity base, showing retained earnings and capital
Share Capital	100	Minimal initial capital; most equity growth from retained earnings
Trend in Net Assets (2020-2024)	From £2,990 to £29,226	Steady and significant growth in net worth over 5 years

Additional Notes:

• The company is classified as a Micro entity, which means financial statements are simplified and limited in detail.
• The company has no overdue filings and is compliant with Companies House deadlines, a positive governance "vital sign."
• No audit exemption has been waived, typical for micro companies, but limits external financial scrutiny.

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3. Diagnosis: Financial Condition and Business Health

Gomareli Ltd’s financial “vitals” suggest a business with a strong liquidity position and steadily growing equity. The significant increase in net current assets from £3,740 in 2020 to nearly £30,000 in 2024 indicates the company is managing its short-term obligations well, maintaining a “healthy cash flow.” This liquidity is critical in wholesale operations, where inventory turnover and supplier payments require careful timing.

The rise in shareholders’ funds reflects cumulative retained profits or capital injections, which is a “sign of robust financial health.” The company’s balance sheet shows no signs of distress such as negative net assets or excessive short-term liabilities.

However, the micro-entity financials do not provide detailed profitability or cash flow statements, which are necessary to assess operational efficiency, margins, and sustainability of earnings. The lack of long-term asset data suggests limited fixed assets, common in wholesale businesses relying on inventory and receivables.

No red flags such as overdue filings, director disqualifications, or insolvency indicators are present. The presence of two significant controllers with balanced shareholding indicates potential stability in governance.

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4. Recommendations: Steps to Improve Financial Wellness

• Enhance Financial Reporting: As the business grows, consider preparing more detailed accounts beyond micro-entity reporting. This will provide better insight into profitability and cash flow trends and support informed decision-making.

• Monitor Cash Flow Closely: Maintain the “healthy cash flow” by regularly monitoring accounts receivable and payable cycles, ensuring timely collections and supplier payments to avoid liquidity crunches.

• Build Fixed Asset Base if Needed: Evaluate if investing in fixed assets or technology might improve operational efficiency or competitive advantage, but balance against cash flow impact.

• Strengthen Capital Structure: Although net assets are positive, the low share capital means equity is mainly retained earnings. Consider formalizing capital injections if expansion or new projects require funding.

• Governance and Compliance: Continue timely filing of statutory accounts and confirmation statements to avoid penalties and maintain good standing. Consider periodic internal financial reviews.

• Plan for Future Growth: Use the current solid financial foundation to explore growth opportunities, such as expanding product lines or entering new markets, but ensure financial controls keep pace.

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Executive Summary