GSI BUILDING SERVICES LTD

Executive Summary

GSI Building Services Ltd shows a small but improving financial position with positive net assets and working capital after initial liquidity challenges. The company is well-managed from a compliance perspective and currently has no overdue filings or director issues. While modest in scale, the business appears capable of meeting its short-term obligations, making it a suitable candidate for credit with ongoing monitoring of liquidity and sector risks.

GSI BUILDING SERVICES LTD - Analysis Report

Company Number: 13556664

Analysis Date: 2025-07-19 12:32 UTC

1. Credit Opinion:
   APPROVE with caution. GSI Building Services Ltd, a micro-entity in building completion and finishing, shows modest but improving financial strength with positive net assets and net current assets in the latest year. The company is small, with only two employees, and has a short trading history since incorporation in 2021, limiting the depth of financial data. However, the latest balance sheet indicates recovery from previous liquidity pressures. Given no overdue filings, active status, and director experience, the company appears capable of meeting short-term obligations but would benefit from ongoing monitoring.

2. Financial Strength:
   The company’s net assets increased from £9,162 in 2023 to £11,890 in 2024, driven by a reduction in current liabilities from £16,379 to £4,877 and a slight decrease in fixed and current assets. The net current assets position turned positive (£2,274) from a negative position (-£4,354) the prior year, indicating improved short-term solvency. Shareholders’ funds represent 100% of net assets, consistent with a micro private limited company funded primarily by equity. The balance sheet reflects a small but stable capital base and no evidence of long-term debt.

3. Cash Flow Assessment:
   Current assets are relatively low at £7,151 but sufficient to cover current liabilities of £4,877, resulting in a positive working capital. The improvement from a negative working capital in the prior year suggests better cash management or reduced short-term payables. However, the absolute cash and assets levels are modest, indicating limited liquidity buffer. The company’s ability to generate operating cash flow is not detailed but the stable employee base and no audit requirement imply simple operations with manageable cash flow demands.

4. Monitoring Points:

• Continue to monitor working capital trends and current liabilities to ensure liquidity remains positive, especially given the cyclical nature of construction-related activities.
• Watch for any material changes in fixed assets or financing arrangements that could affect solvency.
• Track timely filing of accounts and confirmation statements to avoid regulatory issues.
• Monitor director changes or indications of operational expansion that may increase financial risk.
• Review any external economic factors impacting the construction sector that could affect company performance.