GSMV PROPERTIES AND LETTINGS LTD

Executive Summary

GSMV Properties and Lettings Ltd is a newly established private limited company with significant investment property assets but currently exhibits negative net assets and working capital deficits, indicating elevated solvency and liquidity risks. While regulatory compliance is up to date and governance appears straightforward, the company’s financial position warrants close scrutiny of asset valuations, cash flows, and debt terms before considering investment. Ongoing monitoring of operational cash generation and debt servicing ability is recommended.

GSMV PROPERTIES AND LETTINGS LTD - Analysis Report

Company Number: 15042119

Analysis Date: 2025-07-29 15:49 UTC

1. Risk Rating: HIGH
   The company shows net liabilities, negative shareholders' funds, and net current liabilities, indicating solvency and liquidity risks. It is a newly incorporated entity with limited operating history, and a significant bank loan secured on investment property adds financial risk.

2. Key Concerns:

• Negative net assets of £7,358 and shareholders' funds of £7,458 suggest the company’s liabilities exceed its assets, raising solvency concerns.
• Net current liabilities of £78,059 indicate a working capital deficit, which could impair the company’s ability to meet short-term obligations.
• Heavy reliance on a bank loan of £149,756 secured against investment property exposes the company to refinancing and interest rate risk, especially given limited cash reserves (£926).

3. Positive Indicators:

• The company holds investment property valued at £218,408, which represents a tangible asset base that may support future liquidity or refinancing.
• No overdue filings or confirmation statements, indicating compliance with Companies House reporting requirements.
• Sole director and 100% shareholder is identified with no disqualifications or adverse records, supporting governance transparency.

4. Due Diligence Notes:

• Verify the valuation methodology and marketability of the investment property to assess collateral quality and potential liquidity.
• Review detailed cash flow projections and rental income streams to evaluate operational sustainability and debt servicing capacity.
• Investigate the terms and covenants of the bank loan, including repayment schedule and interest rates, to understand financial obligations and risk exposure.