G.S AUTOWORKS LIMITED

Executive Summary

G.S AUTOWORKS LIMITED exhibits significant solvency and liquidity concerns with negative net assets and working capital at the latest year-end, indicating financial distress. While compliance with filing requirements is maintained and the business remains active, the pronounced deterioration in financial position warrants cautious scrutiny. Further due diligence on the company's cash flows, liabilities, and recovery plans is recommended to assess ongoing viability.

G.S AUTOWORKS LIMITED - Analysis Report

Company Number: 12571375

Analysis Date: 2025-07-29 20:22 UTC

1. Risk Rating: HIGH
   The company shows a significant deterioration in net current assets and net assets, moving from positive net assets of £1,099 in 2020 to negative net assets of £6,266 in 2024. This indicates a solvency risk as liabilities exceed assets, which raises concerns about the company's ability to meet its obligations.

2. Key Concerns:

• Negative Net Assets and Working Capital: The 2024 accounts show current liabilities (£7,641) far exceeding current assets (£1,174), producing a negative net current assets figure of -£6,467. This suggests liquidity stress and potential cash flow problems.
• Consistent Decline in Fixed Assets: Fixed assets have decreased from £500 in 2020 to £200 in 2024, which may reflect asset disposals or depreciation without adequate reinvestment, potentially impacting operational capacity.
• Minimal Share Capital and Single Director: With only £1 share capital and one director (also the sole employee), there is limited capital buffer and potential governance risk related to lack of oversight or succession planning.

3. Positive Indicators:

• Up-to-date Filing Compliance: Both accounts and confirmation statement filings are current with no overdue filings, indicating compliance with regulatory requirements.
• Micro-entity Status: As a micro-entity, reporting requirements are minimal, reducing administrative burden and costs for the company.
• Active Trading Status: The company is active with ongoing operations in the maintenance and repair of motor vehicles sector, a typically stable service industry.

4. Due Diligence Notes:

• Investigate the nature and timing of liabilities causing the negative net assets—are these trade payables, loans, or tax liabilities?
• Confirm cash flow trends and whether the company is generating sufficient operating cash to sustain ongoing activities.
• Review director’s plans or statements concerning financial recovery or restructuring to address the solvency issues.
• Assess whether there have been any related party transactions or unusual creditor arrangements given the director is also the sole employee.
• Verify the accuracy of fixed asset valuation and whether impairments or disposals have affected operational capabilities.