GWC IRONMONGERY LTD

Executive Summary

GWC IRONMONGERY LTD exhibits high financial risk primarily due to a negative net asset position driven by substantial long-term liabilities exceeding assets. Despite stable current assets and compliance with filing requirements, the company’s solvency and liquidity profile raise significant concerns for investors. Further due diligence on creditor terms and cash flow resilience is essential to fully assess the company’s viability.

GWC IRONMONGERY LTD - Analysis Report

Company Number: 13107153

Analysis Date: 2025-07-29 19:37 UTC

1. Risk Rating: HIGH
   The company shows significant solvency concerns with net liabilities and a large amount of long-term creditors exceeding total assets. This suggests material financial distress and risk to creditors and investors.

2. Key Concerns:

• Negative Net Assets: Net assets deteriorated from -£41k (2023) to -£71k (2024), indicating overall liabilities exceed assets.
• High Long-Term Creditors: Creditors due after one year increased to £181k, well above total assets, suggesting over-leverage and potential difficulty in meeting obligations.
• Liquidity Mismatch: Although net current assets are positive (~£80k), current liabilities are low relative to long-term creditors. The mismatch may pressure cash flow if long-term debts become due or refinancing is required.

3. Positive Indicators:

• Stable Current Assets: Current assets remained steady around £92k, suggesting consistent working capital availability.
• Small Employee Base: Only 2 employees, indicating low fixed operating costs, which can help manage cash outflows.
• Timely Filings: No overdue accounts or confirmation statements, demonstrating compliance with statutory requirements.

4. Due Diligence Notes:

• Investigate the nature and terms of the large long-term creditors to assess refinancing risk, covenants, and repayment schedules.
• Review cash flow forecasts and bank facilities to understand liquidity management and ability to service debts.
• Understand whether the negative net asset position is due to recent losses or accounting treatments (e.g., asset revaluations or impairments).
• Assess directors’ plans or restructuring efforts to improve solvency and operational stability.
• Confirm absence of director disqualifications or regulatory issues given the company’s financial stress.