THE GUILDED LILY TRADING COMPANY LIMITED

Executive Summary

The Guilded Lily Trading Company Limited has demonstrated financial improvement in its latest accounts, moving from negative equity to a modest positive net asset position. While compliance and governance appear satisfactory, the company’s historical losses and reliance on director loans highlight moderate solvency and liquidity risks. Further review of operational cash flows and related party funding terms is recommended to fully assess sustainability.

THE GUILDED LILY TRADING COMPANY LIMITED - Analysis Report

Company Number: 13016012

Analysis Date: 2025-07-20 14:47 UTC

1. Risk Rating: MEDIUM
   The Guilded Lily Trading Company Limited shows recent improvement in financial position with positive net assets in 2023 after several years of negative equity. However, the company remains small with limited shareholder funds (£1,514) and modest liquidity (net current assets £2,662). The company’s ability to generate sustainable profits and meet obligations depends heavily on continued operational improvements and ongoing director support, which introduces some risk.

2. Key Concerns:

• Historical losses and negative equity from 2020 through 2022 indicate a history of financial strain.
• Reliance on director loans as indicated by £10,384 due to the director suggests dependency on related party funding rather than independent cash flow.
• Modest cash balances (£4,215) relative to current liabilities (£15,482) could present short-term liquidity challenges if operational performance deteriorates.

3. Positive Indicators:

• The 2023 accounts show a return to positive net assets and net current assets, indicating some financial recovery.
• No overdue filings or compliance issues were noted, suggesting good regulatory compliance and governance.
• The company operates in a trade agency sector (SIC 46190), which may require relatively low fixed asset investment, reducing capital intensity and fixed cost burden.

4. Due Diligence Notes:

• Investigate the nature and terms of director loans and whether these represent ongoing financial support or temporary assistance.
• Review cash flow statements and profit & loss details (not provided) to assess operational cash generation trends and profitability outlook.
• Confirm any contingent liabilities or off-balance sheet obligations that may affect solvency.
• Monitor for any changes in trading conditions or market risks given the small asset base and limited equity buffer.