GRC BUSINESS SOLUTIONS LTD

Executive Summary

GRC Business Solutions Ltd is a newly incorporated micro-entity presenting significant solvency and liquidity risks due to negative net assets and reliance on director loans. While regulatory compliance is satisfactory, the company’s financial position and limited operational scale raise concerns about sustainability. Further due diligence on business viability and financial arrangements is advisable before investment consideration.

GRC BUSINESS SOLUTIONS LTD - Analysis Report

Company Number: 15412905

Analysis Date: 2025-07-29 19:37 UTC

1. Risk Rating: HIGH
   The company shows significant negative net assets (£-6,829) and net current liabilities, indicating insolvency at the balance sheet date. Being newly incorporated (January 2024) with only one employee and minimal current assets further exacerbates solvency and liquidity concerns.

2. Key Concerns:

• Negative net assets and net current liabilities suggest the company is unable to meet short-term obligations without additional funding.
• The director’s loan of £4,122 (interest-free and repayable on demand) indicates reliance on director funding, which may not be sustainable or reliable long term.
• Very limited operational scale, with only one employee and minimal assets, raises questions about business sustainability and ability to generate sufficient revenue.

3. Positive Indicators:

• Company is compliant with filing requirements; accounts and confirmation statements are filed on time, indicating good regulatory compliance.
• Sole director and sole person with significant control is consistent, providing clear governance structure.
• The company benefits from micro-entity reporting provisions, reducing compliance burden at this stage.

4. Due Diligence Notes:

• Review the company’s business plan and revenue forecasts to assess potential for improving financial position and cash flow generation.
• Investigate the nature and terms of the director’s loan and any other related party transactions for potential conflicts of interest or financial risk.
• Confirm whether there are any contingent liabilities or off-balance-sheet obligations not disclosed in the accounts.
• Evaluate the company’s client base, contracts, and pipeline to determine operational viability and prospects.
• Monitor subsequent filings for signs of improving or worsening financial health.