GSS PROPERTIES LTD

Executive Summary

GSS Properties Ltd exhibits high financial risk due to substantial liabilities exceeding current assets and minimal net equity. The company maintains statutory compliance but faces liquidity and solvency challenges, compounded by its recent incorporation and lack of operational history. Careful evaluation of creditor terms, asset quality, and cash flow projections is essential before considering investment exposure.

GSS PROPERTIES LTD - Analysis Report

Company Number: 14863052

Analysis Date: 2025-07-20 17:45 UTC

1. Risk Rating: HIGH
   The company demonstrates a precarious solvency position with minimal net equity and significant liabilities relative to assets, indicating elevated financial risk.

2. Key Concerns:

• Negative Working Capital: Current liabilities (£163,418) far exceed current assets (£7,598), resulting in net current liabilities of approximately £155,820, which suggests immediate liquidity pressure.
• High Long-Term Debt: Creditors due after one year total £778,030 against total assets of £935,425, reflecting a substantial leverage ratio and reliance on external financing.
• Minimal Equity Buffer: Net assets stand at only £1,576, indicating very limited equity to absorb potential losses or financial shocks.

3. Positive Indicators:

• Asset Base Established: The company holds fixed assets valued at £935,425, which may represent real estate or property relevant to its letting activities.
• No Overdue Filings: Both accounts and confirmation statement filings are up to date, reflecting compliance with statutory requirements.
• Single Controlling Shareholder: The sole director and 100% shareholder suggests clear control and decision-making authority, potentially enabling swift strategic decisions.

4. Due Diligence Notes:

• Nature and Terms of Creditors: Investigate the composition and repayment terms of both current and long-term creditors to assess refinancing risk and covenant compliance.
• Cash Flow and Income Streams: Examine cash flow statements or management accounts (not provided) to determine operational cash generation and ability to service debt.
• Valuation and Marketability of Fixed Assets: Confirm the nature, valuation basis, and liquidity of fixed assets to understand collateral value and potential for asset realization.
• Business Plan and Revenue Model: Since the company is newly incorporated (May 2023) with no employees besides the director, evaluate the business strategy and projected income to assess sustainability.
• Director’s Financial Standing and History: Although no disqualifications are noted, further background on the director’s track record may inform governance risk.

Executive Summary:
GSS Properties Ltd is a newly formed micro-entity engaged in property letting with a significant asset base but high leverage and negative working capital, resulting in a fragile financial position. While statutory compliance is maintained, the minimal equity buffer and liquidity constraints present substantial solvency risk requiring detailed scrutiny of creditor arrangements and cash flow viability. The company’s operational sustainability remains uncertain given its infancy and limited staffing.