Company Number: 12742118

Analysis Date: 2025-07-29 17:38 UTC

1. Risk Rating: MEDIUM
   GX GOLF LTD demonstrates a mixed financial position with some positive liquidity but declining net assets and an increasing level of long-term creditors. While the company is currently active with no overdue filings, the presence of director loans and reduced equity suggest moderate solvency and operational risks that require monitoring.

2. Key Concerns:

• Declining Net Assets: Net assets dropped from £28,242 in 2023 to £16,882 in 2024, indicating reduced retained earnings and equity buffer.
• Director Loans: The company owes £14,799 to a director (down from £22,799), reflecting reliance on related party funding rather than external finance, which may indicate cash flow constraints.
• Long-Term Creditors: Introduction of £17,634 creditors due after more than one year in 2024, absent in prior years, could increase financial leverage and future repayment obligations.

3. Positive Indicators:

• Positive Net Current Assets: Net current assets improved to £34,516 in 2024 from £28,242 in 2023, showing good short-term liquidity to meet immediate obligations.
• Increasing Cash Balances: Cash at bank increased substantially from £19,895 to £32,056, supporting operational liquidity.
• No Overdue Filings: Compliance with statutory filing deadlines for both accounts and confirmation statements reduces regulatory risk.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term creditors introduced in 2024 to assess repayment risk and impact on future cash flows.
• Review director loan arrangements, including repayment schedules and any potential conflicts of interest or dependency on such funding.
• Examine profitability trends and the reason for the decline in retained earnings, as only balance sheet data is available and no profit and loss account was filed.
• Confirm the completeness and accuracy of debtor values, especially accrued income and prepayments, given their materiality.
• Assess any contingent liabilities or off-balance sheet risks not disclosed in the accounts.