GOOSE GREEN GATE LIMITED
Company number 06090828 · Monitor this company
This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.
Credit Analysis: GOOSE GREEN GATE LIMITED
1. Credit Opinion: CONDITIONAL
This entity appears to be a residents' management company (RMC) based on the structure—20 persons with significant control, 12 officers, zero employees, and SIC code 82990 (business support services). The company is financially stable but micro-scale with minimal substance. Any credit facility would need to be modest and appropriately structured.
Reasoning: The balance sheet is improving but remains thin at £12,147 net assets. Liabilities have reduced significantly year-on-year (from £39,114 to £32,347), indicating sound stewardship. However, total assets of £44,494 provide limited recourse in a default scenario. Credit approval should be conditional on facility size relative to the company's means, and consideration of personal guarantees from director/PSCs given the entity's minimal capital base.
2. Financial Strength
Balance Sheet Trend - Gradual Improvement:
| Year | Net Assets | Movement |
|---|---|---|
| 2018 | -£1,394 | Negative |
| 2019 | £320 | Break-even |
| 2020 | £2,776 | Building |
| 2021 | £7,801 | Growing |
| 2022 | £5,990 | Minor dip |
| 2023 | £8,129 | Recovered |
| 2024 | £6,102 | Dip |
| 2025 | £12,147 | Strongest position |
The company has moved from a deficit position in 2018 to its strongest equity position in 2025. This trajectory demonstrates genuine financial improvement rather than static or deteriorating fundamentals.
Key Balance Sheet Metrics (2025): - Total Assets: £44,494 - Total Liabilities: £32,347 - Net Assets: £12,147 - Share Capital: £200 (minimal) - Net Assets/Share Capital ratio: 60.7x (indicates accumulated reserves rather than injected capital)
Leverage Position: - Debt-to-Equity: £32,347 / £12,147 = 2.66x - This is elevated but typical for an RMC where creditors include service charge prepayments and trade payables for maintenance works
Concern: The share capital of £200 is nominal. The entire equity position is built on retained profits, providing no capital cushion from shareholders. The liability composition needs clarification—if creditors include service charge deposits held on trust for residents, the effective leverage is lower than headline figures suggest.
3. Cash Flow Assessment
Liquidity Position (2025): - Current Assets: £44,494 - Current Liabilities: £32,347 - Net Current Assets: £12,147 - Current Ratio: 1.38x
The current ratio of 1.38x is adequate but not comfortable. For an RMC, the key question is the nature of current assets and liabilities:
- Fixed Assets: Effectively nil (£0 in 2025, £382 in 2024)—the company owns no property or significant assets
- Current Assets: £44,494—likely comprising cash and debtors (service charge arrears)
- Current Liabilities: £32,347—likely trade creditors, service charge deposits, and potentially accrued maintenance costs
Working Capital Assessment: The £12,147 net current assets represents the thinnest of margins for operational flexibility. With zero employees and presumably no payroll obligations, the working capital requirement is low. However, the absence of fixed assets means there is no tangible security for lending.
Cash Flow Concerns: As a micro-entity filing filleted accounts, no profit & loss account is available. We cannot assess turnover, operating margins, or cash generation capacity directly. The improvement in net assets from £6,102 to £12,147 (a £6,045 increase) suggests profitability, but the quantum is modest.
4. Monitoring Points
| Metric | Current | Watch Threshold | Rationale |
|---|---|---|---|
| Net Assets | £12,147 | Below £5,000 | Return to thin capitalisation |
| Current Ratio | 1.38x | Below 1.0x | Liquidity stress indicator |
| Total Liabilities trend | £32,347 | Above £40,000 | Reversal of deleveraging |
| Filing compliance | Current | Any overdue accounts | Governance indicator |
| Creditor days | Unknown | Monitor | Service charge cash flow timing |
Specific Monitoring Recommendations:
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Clarify Liability Composition: Request breakdown of creditors—distinguish between trade payables, service charge deposits held on trust, and actual third-party debt. This materially affects credit risk assessment.
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Service Charge Arrears: Understand the collection rate on service charges. If residents are in arrears, the current assets may be overstated.
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Major Works Planning: RMCs face lumpy expenditure on major repairs. Confirm whether any Section 20 notices (major works consultations) are pending, which could create significant future liabilities.
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Director/PSC Stability: With 20 PSCs and 12 officers, governance can become unwieldy. Monitor for resignations or disputes that could impair decision-making.
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Accounts Filing: Currently compliant, but any overdue filings would be a red flag for governance concerns.
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Insurance and Reserves: Confirm adequate buildings insurance and sinking fund provisions—standard for RMCs but critical for contingent liability exposure.