GUILDMORE FACADES AND CLADDING LIMITED
Executive Summary
Guildmore Facades and Cladding Limited demonstrates a positive financial trajectory with growing profitability and sound liquidity. While the company maintains adequate compliance and governance standards, the provisions and long-term liabilities alongside a relatively low equity cushion represent moderate risks. Further review of contingent liabilities and debtor quality is recommended to validate ongoing operational stability and solvency.
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This analysis is opinion only and should not be interpreted as financial advice.
GUILDMORE FACADES AND CLADDING LIMITED - Analysis Report
Risk Rating: LOW to MEDIUM
The company displays improving financial metrics with positive net assets and growing profits. However, modest equity relative to turnover and some long-term provisions warrant cautious monitoring.Key Concerns:
- Provisions for liabilities: The presence of a significant provision (£496,963) on the balance sheet may indicate contingent risks or potential future outflows requiring closer scrutiny.
- Long-term creditors: The company has non-current liabilities (£217,063) that could pressure future cash flows if not managed prudently.
- Relatively low equity base: Shareholders’ funds at £393,535 compared to turnover of over £16 million suggest a leveraged operational model which could be vulnerable to downturns or delayed payments.
- Positive Indicators:
- Strong working capital position: Net current assets increased substantially to over £1.1 million, reflecting good short-term liquidity.
- Profitability: The company reported a profit before tax of £228,733 on significant revenue growth, indicating operational scalability and improving margins.
- Compliance and governance: No overdue filings; accounts and confirmation statements are up to date. Auditor’s report is clean with no material concerns noted, and going concern status is supported.
- Due Diligence Notes:
- Review the nature and reason for the provisions and long-term creditors to assess potential impact on solvency and cash flows.
- Confirm the quality and aging profile of trade debtors (£2.99 million), considering the construction industry’s vulnerability to payment delays.
- Evaluate the company’s contract pipeline and operational capacity to sustain revenue growth without overextending resources.
- Investigate director backgrounds and changes for any governance or operational risk implications, noting the recent appointment in November 2024.
- Consider external sector risks such as construction regulation compliance, particularly health and safety and building control adherence.
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