Company Number: 13149037

Analysis Date: 2025-07-29 20:02 UTC

1. Credit Opinion: DECLINE. Gore Groundworks Limited shows a persistently weak financial position characterized by negative net assets and significant working capital deficits. Despite some improvement in total assets less current liabilities from negative in 2023 (-£4,506) to positive in 2024 (£14,406), the company remains technically insolvent with shareholders' funds still negative (-£536). Current liabilities greatly exceed current assets, indicating liquidity stress and potential difficulties in meeting short-term obligations. The small equity base (£100 share capital) and ongoing losses reflected in retained earnings suggest limited financial resilience. The departure of one director in September 2024 may also impact management continuity.

2. Financial Strength: The company’s balance sheet reveals a net liability position, with net current liabilities of £85,585 in 2024, though this is an improvement over the prior year’s £110,803 deficit. Fixed assets are significant (£99,991), mostly comprising plant and machinery, which may provide some collateral value. However, the high level of current liabilities (£151,955) relative to current assets (£66,370) highlights ongoing short-term funding pressures. Negative retained earnings (-£636) indicate accumulated losses since incorporation. The company’s total net liabilities of £536 show it remains technically insolvent but has improved from a more severe deficit last year.

3. Cash Flow Assessment: Cash at bank increased markedly from £23,647 in 2023 to £57,908 in 2024, which is a positive sign for near-term liquidity. However, the large current liabilities suggest cash flow may be tight, requiring careful management of payables and receivables. Debtors increased modestly to £6,962 but remain low relative to creditors, implying potential collection challenges. The working capital deficit points to reliance on external funding or creditor terms to meet short-term obligations. The company’s small employee base (average 1 employee) may help control costs but also limits operational scale.

4. Monitoring Points:

• Continued monitoring of net current assets and liquidity ratios to ensure the company can meet short-term debts.
• Watch for trends in retained earnings to assess if losses are being reduced or if profitability can be achieved.
• Review director stability and governance, especially following the recent director resignation.
• Monitor trade debtor collection and creditor payment terms to manage cash flow effectively.
• Track fixed asset utilization and any disposals that could impact collateral value.