GPT CONSULT (2023) LIMITED

Executive Summary

GPT Consult (2023) Limited is an early-stage private limited company with significant intangible assets but currently exhibits a working capital deficit and reliance on secured borrowing. While the company has growth potential, credit approval is recommended with conditions focused on close liquidity monitoring and possibly additional security. Ongoing assessment of cash flow and debtor management will be critical to mitigate financial risk.

GPT CONSULT (2023) LIMITED - Analysis Report

Company Number: 14861604

Analysis Date: 2025-07-20 17:47 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   GPT Consult (2023) Limited is a newly incorporated private limited company with its first full set of accounts filed. The company holds significant intangible assets (goodwill) and tangible fixed assets, indicating investment in business operations. However, it shows a working capital deficit with current liabilities (£605k) exceeding current assets (£474k) by £131k. The company has bank borrowings including a factoring facility secured by fixed and floating charges. The negative net current assets and reliance on secured debt pose liquidity risks. Credit approval should be conditional on monitoring cash flow closely, and possibly requiring personal guarantees or additional security given the early stage of trading and limited trading history.

2. Financial Strength:
   The balance sheet shows net assets of £189k supported mainly by share capital of £300k and intangible fixed assets valued at £333k (net of amortisation). The current liabilities are high relative to current assets, resulting in a working capital deficit. The company has a loan balance of about £158k (split between current and non-current), plus a factoring arrangement (£215k) secured by company assets. Retained earnings are negative £111k, reflecting accumulated losses or amortisation charges. Overall, the financial strength is moderate for a new company, but the negative working capital and secured debt exposure indicate some financial vulnerability.

3. Cash Flow Assessment:
   Cash at bank is low at £4,456, which is minimal relative to current liabilities due shortly. Debtors are substantial (£299k), but the high trade creditors and other creditors (£292k combined) plus bank overdraft (£129k) create pressure on liquidity. The company’s reliance on factoring suggests cash flow management is critical. Without strong collection of receivables and control of payables, liquidity risk is elevated. The working capital deficit also signals potential cash flow constraints in meeting short-term obligations without refinancing or equity injection.

4. Monitoring Points:

• Liquidity ratios (current ratio, quick ratio) on a quarterly basis to watch working capital trends.
• Debtor ageing and collection efficiency to ensure timely cash inflows.
• Covenant compliance on bank loans and factoring arrangements.
• Profitability progression and retained earnings trajectory in subsequent filings.
• Any changes in secured debt or additional borrowing that may impact security coverage.
• Directors’ financial stewardship and any changes in management or ownership.