HJW CONSULTING LTD
Executive Summary
Girls To The Front Ltd is a micro-entity with a sharply deteriorated financial position marked by a near-total erosion of net assets and negligible current assets as of January 2024. Despite remaining compliant with regulatory filings and maintaining an active status, the company’s minimal liquidity and lack of employees raise significant concerns regarding its operational sustainability and solvency. Further due diligence is recommended to understand the underlying causes and the director’s plans for recovery or continued operation.
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This analysis is opinion only and should not be interpreted as financial advice.
GIRLS TO THE FRONT LTD - Analysis Report
Risk Rating: HIGH
The company exhibits significant financial contraction and minimal current assets, posing a high risk of insolvency and liquidity challenges.Key Concerns:
- Severe Reduction in Net Assets: Net assets have plummeted from £13,896 in 2023 to only £100 in 2024, indicating a drastic erosion of financial stability.
- Minimal Current Assets: Current assets dropped from £19,458 to just £98 in the latest year, raising serious liquidity concerns and ability to meet short-term obligations.
- No Employees and Low Operational Scale: The company reported zero employees throughout the period and is categorized as a micro-entity, suggesting limited operational capacity and potential sustainability issues.
- Positive Indicators:
- Current Liabilities Extremely Low: The latest liabilities stand at £2, effectively negligible, which slightly offsets liquidity risk although this may reflect reduced activity rather than improved financial health.
- No Overdue Filings: The company is compliant with statutory filing deadlines for accounts and confirmation statements, indicating good governance in terms of regulatory compliance.
- Active Status with a Single Director: The company remains active with a named director who has maintained continuous appointment since incorporation, suggesting some level of ongoing management oversight.
- Due Diligence Notes:
- Investigate reasons behind the drastic decline in net assets and current assets between 2023 and 2024—possible asset disposals or write-downs.
- Review cash flow statements or bank records to assess the company’s actual liquidity position and cash management practices.
- Evaluate business model viability given zero employees and minimal financial activity—confirm whether the company is operational or dormant in practice despite active status.
- Confirm no contingent liabilities or off-balance-sheet obligations that could further impair solvency.
- Verify director’s intentions and any plans for recapitalization or restructuring to address the weakened financial position.
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