GWERIN MANAGEMENT CYF.

Executive Summary

Gwerin Management Cyf. shows a marked deterioration in financial health with net liabilities replacing net assets over the latest year, signaling elevated solvency and liquidity risks. While regulatory compliance and stable management are positive factors, the financial trends raise concerns about ongoing operational sustainability. Further investigation into the company’s recent performance and cash flow is essential before considering investment.

GWERIN MANAGEMENT CYF. - Analysis Report

Company Number: 13918205

Analysis Date: 2025-07-29 20:49 UTC

1. Risk Rating: HIGH
   The company exhibits a negative net asset position and net current liabilities as at the latest financial year-end, indicating solvency and liquidity risks. The sharp deterioration in financial position between the prior and current year raises significant concern about its ability to meet short-term obligations.

2. Key Concerns:

• Solvency Risk: The net assets declined from £31,325 positive (2024) to £5,239 negative (2025), signaling that liabilities now exceed assets. This is a classic indicator of potential insolvency risk.
• Liquidity Concerns: Current liabilities of £12,420 exceed current assets of £7,181 in the latest year, resulting in a negative working capital of £5,239. Cash has dropped substantially from £39,223 to £7,181, potentially straining operational cash flow.
• Operational Stability: The company’s financials show no debtors and minimal current assets in the latest year, suggesting either reduced business activity or collection issues. The small employee base (2 employees) and decreasing financial resources could impact ongoing operations.

3. Positive Indicators:

• No Overdue Filings: The company has met its statutory filing deadlines for accounts and confirmation statements, indicating regulatory compliance and governance diligence.
• Experienced Director and Significant Control: The sole director and 75-100% shareholder, Mr. Crispin Lewis Jones, has been in place since incorporation, providing continuity in management.
• No Indications of Insolvency Proceedings: The company is not in liquidation, administration, or receivership as per the data, suggesting it is currently operational.

4. Due Diligence Notes:

• Investigate the cause of the significant decline in net assets and working capital between 2024 and 2025. Review the profit and loss account (not filed) to assess operational performance, losses, or impairments.
• Confirm the nature of director loans (£10,800) and their terms, as they represent a material portion of liabilities. Assess whether these are repayable on demand or subordinated.
• Clarify the absence of trade debtors in the latest year and whether this points to a drop in sales or changes in credit policy.
• Review cash flow statements and budgets to determine liquidity forecasts and operational viability.
• Assess any contingent liabilities or off-balance sheet exposures not apparent in the balance sheet.