GP WESTON LTD

Executive Summary

GP Weston Ltd is currently facing high solvency and liquidity risk, evidenced by persistent and growing negative net assets and working capital deficits since incorporation in 2022. While compliance with filing requirements is maintained and directorship appears stable, the financial position raises significant concerns regarding operational sustainability without remedial actions. Further detailed financial and operational due diligence is recommended to evaluate the company's recovery prospects and risk mitigation strategies.

GP WESTON LTD - Analysis Report

Company Number: 13951721

Analysis Date: 2025-07-29 13:34 UTC

1. Risk Rating: HIGH
   The company exhibits significant negative net current assets and net liabilities which have worsened over four reported years. The persistent and increasing deficit in working capital and shareholders' funds indicates solvency pressure. Although it is a micro-entity with limited filing requirements, the financial position raises serious concerns about the ability to meet short-term obligations.

2. Key Concerns:

• Solvency Risk: Negative net assets of £40,782 as of March 2025, deteriorating from £5,315 in 2022, signals ongoing losses or depletion of equity.
• Liquidity Concerns: Current liabilities more than triple current assets at the last two year ends, with net current liabilities at £40,782, indicating potential cash flow difficulties.
• Operational Sustainability: The company has not shown improvement in financial health since incorporation in 2022 and continues to operate with negative equity and working capital deficits, threatening business continuity without external funding or restructuring.

3. Positive Indicators:

• Compliance: The company is up to date with both accounts and confirmation statement filings, avoiding regulatory penalties or compliance flags.
• Stable Directorship: The directors have been in place since incorporation with no reported disqualifications or governance issues.
• Business Activity: The company operates in real estate agencies, a sector with potential revenue streams, and maintains an active website with clear contact information, suggesting ongoing trading activity.

4. Due Diligence Notes:

• Investigate the nature and terms of current liabilities to assess if they are short-term or potentially convertible to longer-term debt.
• Review detailed profit and loss data to determine the causes of the continuing losses or negative reserves and whether these are operational or non-recurring.
• Assess any related party transactions, particularly given significant control by directors and a family enterprise, to identify potential conflicts or funding arrangements.
• Confirm the company’s cash flow management strategies and plans to restore solvency or secure additional capital.
• Examine the impact of the change in accounting standards (transition to FRS 105) and derecognition of deferred tax asset on the financial position and projections.