GSP TRAFFIC SOLUTIONS LTD

Executive Summary

GSP TRAFFIC SOLUTIONS LTD demonstrates significant financial fragility with net assets at a nominal £1 over multiple years, indicating high solvency and liquidity risk. Despite compliance with filing obligations, the lack of meaningful financial substance raises concerns about operational sustainability. Further due diligence is advised to clarify the company’s business activities and financial strategy.

GSP TRAFFIC SOLUTIONS LTD - Analysis Report

Company Number: 13538700

Analysis Date: 2025-07-20 16:47 UTC

1. Risk Rating: HIGH
   The company's financials show nominal current assets and net assets of only £1 over multiple years, indicating an extremely fragile financial position. Such minimal asset levels suggest an inability to meet obligations or absorb operational shocks.

2. Key Concerns:

• Solvency Risk: Net assets of £1 consistently indicate minimal equity buffer; the company is unlikely to withstand liabilities or losses.
• Liquidity Concerns: Current assets at £1 imply no meaningful liquid resources to cover short-term obligations or operational expenses.
• Operational Stability: The company has been active since 2021 but reports no meaningful financial activity or growth, raising concerns about ongoing viability.

3. Positive Indicators:

• Regulatory Compliance: Accounts and confirmation statements are filed on time with no overdue filings, showing adherence to statutory requirements.
• Single Director Control: The sole director and 100% shareholder (Mr Gavin Scott Potts) provides clear accountability and decision-making authority.
• Micro Entity Status: Filing as a micro entity reduces regulatory burden, appropriate for a very small-scale operation.

4. Due Diligence Notes:

• Investigate the nature of the company’s operations and revenue generation, given the minimal asset base and absence of financial growth.
• Confirm whether the company has any contingent liabilities or off-balance sheet obligations not disclosed.
• Query the director regarding plans for financial improvement or potential restructuring given the weak balance sheet.
• Assess any related party transactions or funding arrangements that may not appear in the accounts.
• Verify the company’s bank and cash position beyond the nominal current assets figure.