B PEARSON HOLDINGS LTD

Executive Summary

B Pearson Holdings Ltd is a micro private company with a consistently weak balance sheet showing negative equity and net current liabilities. The company relies heavily on director loans for liquidity and lacks sufficient working capital to cover short-term obligations. Given these factors, the credit risk is high and credit facilities are not recommended without a significant improvement in financial metrics and operational cash flows.

B PEARSON HOLDINGS LTD - Analysis Report

Company Number: 13145131

Analysis Date: 2025-07-29 14:03 UTC

Credit Opinion:
DECLINE. B Pearson Holdings Ltd shows persistent net current liabilities and negative shareholders’ funds over the last four financial years, indicating ongoing capital erosion and weak financial health. The company is micro-sized with limited assets and a director loan that is interest-free and repayable on demand, suggesting reliance on director funding for operations. There is insufficient evidence of profitability or positive cash flow generation to support new credit facilities. Without improvement in working capital or equity base, the risk of default on credit obligations is elevated.

Financial Strength:

• The company’s balance sheet shows net current liabilities of £1,137 as of 31 January 2024, increasing from £659 in the prior year.
• Shareholders’ funds are negative at £1,677, deteriorating from £1,199 the previous year, indicating accumulated losses or director loans that exceed equity.
• Fixed asset information is not provided, but the total assets less current liabilities are negative, highlighting financial weakness.
• The director’s loan balance remains substantial at £76,072 (net of repayments), interest-free and repayable on demand, evidencing dependency on director funding rather than external financing.
• The company is classified as micro with minimal capital (£1 share capital) and limited operating scale.

Cash Flow Assessment:

• Current assets of £99,925 mainly comprise cash or receivables but are insufficient to cover current liabilities of £101,062, resulting in a working capital deficit.
• Negative working capital and ongoing reliance on director advances suggest fragile liquidity.
• No audit or independent verification limits insight into cash flow sustainability or profitability.
• Interest-free director loans provide short-term liquidity but may be withdrawn, posing a liquidity risk.
• The company employs only one person, indicating low operating costs but also limited revenue generation capacity.

Monitoring Points:

• Track improvement or deterioration in net current assets and shareholders’ funds to assess financial stabilization.
• Monitor any changes in director loan balances and whether these remain interest-free and repayable on demand.
• Watch for filing of audited accounts if company grows beyond micro thresholds or if external financing is sought.
• Review operational performance and cash flow generation once detailed profit and loss data become available.
• Keep alert for any changes in company status or director conduct that could affect creditworthiness.