Company Number: 12757413

Analysis Date: 2025-07-29 20:24 UTC

1. Risk Rating: LOW
   GT SPARES LTD demonstrates a stable financial position with positive net current assets and net assets growth over recent years. The company has no overdue filings or outstanding compliance issues and maintains a small but consistent workforce. Its solvency and liquidity indicators suggest it can meet obligations.

2. Key Concerns:

• Limited Scale and Financial Depth: As a micro-entity with modest current assets (~£10k) and liabilities (~£3.9k), the company operates with a narrow financial cushion, which may limit its ability to absorb shocks.
• Concentrated Ownership and Control: Mr. Waseem Majeed Raja holds 75-100% ownership and is the sole director, which concentrates decision-making and may pose governance risks if not mitigated.
• Minimal Share Capital: Share capital remains at £100, which is typical for micro-entities but reflects limited equity buffer for creditors or investors.

3. Positive Indicators:

• Consistent Improvement in Net Assets: The company’s net assets increased from £3,567 in 2023 to £6,445 in 2024, indicating improving financial health.
• Positive Working Capital: Net current assets have grown from £3,567 to £6,445, showing improved liquidity.
• Compliance and Timeliness: All accounts and confirmation statements have been filed on time, indicating good regulatory compliance.
• Operational Growth: Increase in average employees from 2 to 3 suggests some operational expansion.

4. Due Diligence Notes:

• Review detailed profit and loss accounts and cash flow statements (not provided) to assess profitability and operational cash generation.
• Confirm the nature and terms of current liabilities to understand short-term debt obligations and potential refinancing risks.
• Investigate any contingent liabilities or related party transactions given sole control by the principal director.
• Assess business model sustainability and market positioning in retail trade of motor vehicle parts and accessories sector.
• Verify director’s background for any undisclosed regulatory or compliance issues beyond Companies House filings.