GWS PROJECTS LIMITED

Executive Summary

GWS Projects Limited is a financially sound and growing private company with strong net assets and liquidity, supported by effective working capital management. The company’s improving balance sheet and low gearing support the ability to meet credit obligations. Close attention should be paid to debtor management and tax liabilities to maintain cash flow stability.

GWS PROJECTS LIMITED - Analysis Report

Company Number: 12712317

Analysis Date: 2025-07-29 20:09 UTC

1. Credit Opinion: APPROVE. GWS Projects Limited demonstrates strong financial growth and an improving liquidity position. The company has maintained an active trading status since incorporation in 2020, with no signs of financial distress or overdue filings. The current directors have stable occupations related to the industry, indicating competent management. The company’s increasing net assets and working capital, combined with a low level of debt, support their capacity to meet debt obligations reliably.

2. Financial Strength: The company’s net assets increased significantly from £295k in 2023 to over £1.09m in 2024, indicating substantial growth in equity and retained earnings. Current assets more than tripled to nearly £2m, driven largely by a rise in debtors (from £466k to £1.05m) and cash balances (from £120k to £563k). Tangible assets remain modest (£16k), suggesting limited fixed asset investment but also low capital expenditure risk. The balance sheet shows a low gearing level with bank loans at just £22k, and shareholders’ funds fully cover liabilities. The increase in provisions is minor and does not materially impact net asset strength.

3. Cash Flow Assessment: The company has a strong liquidity position with net current assets increasing from £280k to £1.08m, indicating ample working capital to support operational needs. Cash on hand at £563k provides a comfortable buffer against short-term obligations. However, the large increase in trade debtors (from £466k to £1.05m) should be monitored as it may reflect extended credit terms or slower collections, which could impact cash flow if not managed properly. Current liabilities are manageable, with taxation and social security costs increasing significantly, likely reflecting increased profitability. Bank overdrafts have decreased, showing improved cash management.

4. Monitoring Points:

• Debtor collection periods and credit control effectiveness due to large debtor balances.
• Sustainability of growth to avoid overextension of working capital.
• Taxation and social security liabilities to ensure timely payments and avoid penalties.
• Regular review of provisioning for liabilities and potential contingent risks.
• Continued monitoring of cash flow trends and any changes in debt structure.