GPLX LIMITED

Executive Summary

GPLX LIMITED is a young private limited company with modest financial resources and tight liquidity, reflecting a medium risk profile for investors. The company is compliant with filing requirements and maintains a positive cash position, but limited equity and a narrow working capital margin highlight potential vulnerabilities. Further due diligence on operational cash flows, revenue stability, and business viability is recommended to fully assess financial resilience.

GPLX LIMITED - Analysis Report

Company Number: 14415786

Analysis Date: 2025-07-29 16:38 UTC

1. Risk Rating: MEDIUM
   GPLX LIMITED presents a moderate risk profile primarily due to its early stage of operation with limited financial history, marginal net current assets, and relatively small capital base. The company is solvent but shows tight liquidity and thin equity, which warrants caution.

2. Key Concerns:

• Liquidity Constraints: Current assets (£23,285) barely cover current liabilities (£22,486), leaving a narrow net current asset position of £799. This tight working capital margin suggests potential cash flow pressure.
• Limited Operating History: Incorporated in late 2022, GPLX has just over two years of accounts, limiting the ability to assess operational stability and profitability trends.
• Small Equity Base and Reserves: Shareholders’ funds stand at £1,340 with modest profit and loss reserves (£1,240), indicating limited buffer against losses or unexpected expenses.

3. Positive Indicators:

• Compliance and Filing: The company is up to date with statutory filings (accounts and confirmation statement) and is not in liquidation or any insolvency process.
• Cash Holdings: Despite a reduction from the prior year (£18,268 vs. £24,539), cash remains a significant component of current assets, supporting short-term obligations.
• No Director or Governance Issues: Directors are clearly identified with no records of disqualification or compliance red flags.

4. Due Diligence Notes:

• Profitability and Cash Flow Trends: Review management accounts or cash flow statements to understand the company’s ability to generate sustainable profits and maintain liquidity.
• Customer and Contract Stability: Investigate the nature of contracts or revenues underpinning the debtor balances (£5,017) and turnover to assess revenue reliability.
• Contingent Liabilities or Off-Balance Sheet Risks: Examine any potential liabilities not reflected in the balance sheet that could impact solvency.
• Business Model Viability: Given the SIC codes (support activities to performing arts and other engineering activities), clarify the primary revenue streams and market positioning to evaluate operational sustainability.