GSKINNER LTD

Executive Summary

GSKINNER LTD is a very new micro-entity with minimal financial resources and no operating history, resulting in a weak balance sheet and negligible liquidity. The current financial position does not support credit approval as the company lacks proven capacity to service debt or sustain operations independently. Ongoing monitoring of financial performance and cash flow will be essential to reassess creditworthiness in the future.

GSKINNER LTD - Analysis Report

Company Number: 14574049

Analysis Date: 2025-07-29 19:53 UTC

1. Credit Opinion: DECLINE
   GSKINNER LTD is a very recently incorporated micro-entity with extremely limited financial data and operational history. The balance sheet shows £80,000 in fixed assets offset by a long-term creditor of the same amount, leaving net assets of merely £1 and negligible working capital. There are no employees and current assets (cash or receivables) are minimal at £1. This indicates an absence of liquidity to service any short-term obligations, raising serious concerns over its ability to meet debt repayments or sustain operations without additional capital injection. The director is also the sole significant controller, which concentrates risk.

2. Financial Strength:
   The company’s financial strength is very weak at present. The fixed assets are fully matched by long-term liabilities, resulting in almost no equity cushion. Current assets are practically non-existent and current liabilities are not detailed but net current assets are only £1, implying very limited working capital. The balance sheet does not reflect any operating profit reserves or cash resources. Given the company’s micro status and recent formation, the financial position is typical of a start-up but provides no comfort on solvency or capital adequacy.

3. Cash Flow Assessment:
   Cash flow position is concerning due to current assets of just £1 and no reported employees or operating activity yet. There is no evidence of positive operating cash inflows or working capital to cover short-term liabilities. The company likely relies on external funding or shareholder loans (as reflected in the long-term creditor) to finance fixed assets and initial costs. Without cash inflows or operating revenue, the company may face liquidity strain if additional funds are not secured.

4. Monitoring Points:

• Future filings should be monitored for revenue generation and profit trends to assess operational viability.
• Liquidity ratios and net current assets in subsequent accounts will be critical to confirm ability to meet short-term obligations.
• Changes in capital structure, especially reduction of long-term liabilities or injection of equity, would improve financial strength.
• Director conduct and any changes in management or control should be reviewed to assess governance risk.
• Timely filing of next accounts and confirmation statements should be ensured.