Company Number: 12717680

Analysis Date: 2025-07-29 19:01 UTC

1. Risk Rating: MEDIUM
   GS4 Services Ltd demonstrates a positive net asset position and increasing net current assets, indicating solvency on paper. However, the significant increase in creditors, especially hire purchase liabilities, and relatively low cash reserves compared to current liabilities suggest some liquidity constraints. The company is active with timely filings and no overdue returns, which supports operational compliance.

2. Key Concerns:

• Liquidity Pressure: Cash on hand (£60,587) is modest relative to current liabilities (£446,611), raising concerns about short-term cash flow management, despite positive net current assets.
• High Debt Levels: Substantial hire purchase obligations both within one year (£137,001) and after one year (£378,508) indicate reliance on asset financing, increasing financial risk if revenue fluctuates.
• Concentration of Control: Mr. Stephen Nicholas Pass holds 75-100% of voting rights and controls director appointments; this concentration might affect governance transparency and decision making.

3. Positive Indicators:

• Growing Net Assets and Retained Earnings: Net assets improved from £169k (2023) to £230k (2024), reflecting retained profitability and asset growth.
• Timely and Full Compliance: Accounts and confirmation statements are filed on time with no overdue filings, indicating good regulatory adherence.
• Tangible Asset Base: Fixed assets increased to £477,841 with recent additions, supporting operational capacity in road construction activities.

4. Due Diligence Notes:

• Review the ageing profile and collectability of debtors (£520,000), as high receivables impact liquidity.
• Examine cash flow statements (not provided) to assess operational cash generation and working capital management.
• Investigate terms and conditions of hire purchase agreements to understand repayment schedules and covenants.
• Consider the impact of director control concentration on company governance and risk management practices.
• Confirm the absence of audit given exemption status and evaluate whether this affects the reliability of financial information.