GV AUTOMATION & CONTROLS LTD

Executive Summary

GV AUTOMATION & CONTROLS LTD shows improving financial health with positive net current assets and increased equity over the last year, signaling better short-term financial management. However, given its micro size, limited operating history, and reliance on directors’ loans, credit approval should be conditional on ongoing monitoring of cash flow and operational performance. The company’s current financial position supports credit facilities but warrants cautious exposure until a longer track record is established.

GV AUTOMATION & CONTROLS LTD - Analysis Report

Company Number: 14222709

Analysis Date: 2025-07-20 16:27 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   GV AUTOMATION & CONTROLS LTD is a micro-sized private limited company incorporated in 2022 with current financials showing improvement in net assets and working capital. The company has demonstrated a positive turnaround from a net current liability position in 2023 to a net current asset position in 2024, indicating better short-term financial management. However, the business is still small and relatively new, with limited operating history and minimal equity (£5,219 shareholders funds). Directors’ advances are notable, implying reliance on insider funding. Approval for credit facilities is recommended but with conditions: close monitoring of cash flow, further financial information on profitability and turnover, and restrictions on facility size until a longer operating track record is established.

2. Financial Strength:
   The balance sheet shows fixed assets of £826 and current assets of £23,659 against current liabilities of £19,266 as of July 31, 2024. The net current assets stand at £4,393, a significant improvement from a net current liability of £1,586 the previous year. Shareholders’ funds increased from £65 to £5,219, evidencing some retained earnings or capital injections, though total equity remains modest. The company’s micro entity status aligns with its small asset base and employee count (2 on average). The increase in assets and equity suggests a positive financial trajectory but the scale remains modest, limiting financial resilience.

3. Cash Flow Assessment:
   Current assets include cash and debtors, but detailed cash figures are not explicitly broken down for 2024 in the accounts summary. The previous year cash was £6,611. The positive net current assets position suggests adequate short-term liquidity to cover immediate liabilities. Directors’ loans remain on the balance sheet (£646 and £2,114 respectively), indicating some reliance on related-party funding, which could be a risk if these loans are withdrawn or not converted to equity. Working capital management appears to have improved but requires ongoing scrutiny to ensure sustainable cash flows.

4. Monitoring Points:

• Cash flow trends and ability to generate operating cash from core activities.
• Profitability metrics and margin stability as financial statements beyond balance sheet are not filed publicly for micro entities.
• Continued directors’ loan balances and potential impacts on liquidity if these change.
• Timely filing of accounts and confirmation statements to maintain regulatory compliance.
• Growth in turnover and debtor days to ensure receivables do not strain liquidity.
• Any changes in ownership or control that might affect governance or financial strategy.