GTL TECH HOLDINGS LIMITED

Executive Summary

GTL Tech Holdings Limited demonstrates significant solvency risks with negative net assets and considerable long-term liabilities exceeding current assets. The absence of operating revenue and reliance on intercompany loans raise liquidity and operational sustainability concerns. While regulatory compliance is maintained, further investigation into the company’s business activities and financial commitments is essential to fully assess investment risk.

GTL TECH HOLDINGS LIMITED - Analysis Report

Company Number: 14493999

Analysis Date: 2025-07-29 13:23 UTC

1. Risk Rating: HIGH
   The company exhibits a negative net asset position and net current liabilities, indicating solvency concerns. The presence of substantial long-term liabilities relative to minimal current assets heightens financial risk. Additionally, reliance on intercompany loans as fixed asset investments without clear revenue generation raises liquidity and operational stability issues.

2. Key Concerns:

• Negative Net Assets: The company reports net assets of (£609) and net current liabilities of (£613) as at 30 November 2023, indicating an equity deficit and weak solvency position.
• Significant Long-Term Creditors: Creditors falling due after more than one year amount to £142,496, which exceeds current assets and suggests substantial indebtedness.
• Lack of Operating Revenue: Debtors are zero, and no profit and loss account was included, implying no or minimal trading activity and limited operational cash flow.

3. Positive Indicators:

• Compliance with Filing Obligations: The company’s latest accounts and confirmation statement are filed on time with no overdue filings, indicating adherence to regulatory requirements.
• Clear Accounting Policies: The accounts disclose detailed accounting policies and use of FRS 102, showing transparency and compliance with accounting standards.
• Active Status with Recent Incorporation: Incorporated in late 2022 and currently active, suggesting the company is in early stages and may be in asset acquisition or investment phase.

4. Due Diligence Notes:

• Investigate the nature and terms of the £142,500 intercompany loan classified as fixed asset investment to assess recoverability and impact on liquidity.
• Review the company's business model and revenue generation plans given the absence of debtors and profit and loss information.
• Assess the identity and financial standing of creditors due after one year to understand the nature of liabilities and repayment risks.
• Confirm whether the company has sufficient liquidity or external funding arrangements to meet current liabilities of £142,496.
• Evaluate director and shareholder background and their plans for the company’s financial turnaround or capital injection.