GPB PROPERTY (1) LTD

Executive Summary

GPB Property (1) Ltd currently exhibits a highly leveraged balance sheet with negligible equity and minimal liquidity, raising significant concerns over its ability to service debt or withstand financial stress. Given its short trading history, lack of cash reserves, and dependency on creditor funding, the company presents a high credit risk. Without material improvements in financial structure or cash flows, credit facilities cannot be recommended at this stage.

GPB PROPERTY (1) LTD - Analysis Report

Company Number: NI693975

Analysis Date: 2025-07-29 17:16 UTC

1. Credit Opinion: DECLINE
   GPB Property (1) Ltd demonstrates a highly leveraged balance sheet with fixed assets of £197,000 matched by creditors of the same amount falling due after more than one year, resulting in negligible net assets (£100). The company shows no working capital or liquid assets to meet short-term obligations. Given the absence of cash or current assets beyond a nominal amount and the entire asset base financed by long-term creditors, the capacity to service debt or absorb financial shocks is extremely limited. The company’s micro-entity status and very recent incorporation (2023) add to the risk profile, as there is minimal operational history or financial track record to assess. Without further equity injection or cash flow generation, granting credit facilities would present a high risk of default.

2. Financial Strength:
   The balance sheet is tightly constrained with fixed assets (£197,000) offset almost entirely by long-term liabilities (£197,000). Net assets and shareholders’ funds are nominal (£100), indicating minimal equity cushion. Current assets stand at only £100, and current liabilities are equal to this, resulting in essentially zero net current assets. This structure suggests the company is heavily reliant on creditor financing without internal equity or retained earnings to support growth or absorb losses. The lack of diversification in asset types and absence of liquidity undermine financial resilience.

3. Cash Flow Assessment:
   Current assets of £100 provide negligible liquidity to cover immediate payables. The company employs only one person (the director), implying minimal operating expenses but also limited revenue generation capacity. No information is available about cash flows or profitability, but the micro-entity exemption and minimal current assets imply cash generation is minimal or non-existent. Working capital is effectively zero, indicating a fragile liquidity position incapable of supporting operational needs or debt servicing without external funding.

4. Monitoring Points:

• Watch for any increase in current assets or cash balances indicating improved liquidity.
• Monitor any equity injections or reduction in creditor balances to strengthen net assets and improve solvency.
• Track operational performance and revenue generation as reported in future accounts to assess business viability.
• Review director’s management strategy and any plans for financial restructuring or capital raising.
• Ensure timely filing of accounts and confirmation statements to maintain transparency.