P J TRANSFORMATIONS LTD

Executive Summary

P J TRANSFORMATIONS LTD is an early-stage micro-entity in building development with weak financials showing negative net assets and working capital deficit. The company currently lacks the liquidity and capital base to support credit facilities or commercial credit risk. Close monitoring of future financial performance and capital injections is essential before reconsidering credit exposure.

P J TRANSFORMATIONS LTD - Analysis Report

Company Number: 14480591

Analysis Date: 2025-07-29 20:16 UTC

1. Credit Opinion: DECLINE
   P J TRANSFORMATIONS LTD presents as a newly incorporated micro-entity with its first financial year ending November 2023. The company shows a net liability position with negative net assets of £111 and negative working capital of £1,101. This indicates insufficient short-term liquidity and an overall weak capital structure. The absence of trading history beyond one year and the negative equity raise concerns about the company’s ability to service debt or meet commercial obligations at this stage. Credit approval is not recommended without further financial strengthening or external guarantees.

2. Financial Strength:
   The balance sheet reveals fixed assets of only £990 and current assets of £1,599 against current liabilities of £2,700. The net current liability position (-£1,101) and negative shareholders’ funds (-£111) highlight that the company’s liabilities exceed its assets. As a micro-entity in the building development sector, it likely requires substantial working capital to fund projects and operations, which is currently not evidenced. The absence of accumulated reserves or positive equity suggests the company has either invested heavily upfront or incurred initial losses.

3. Cash Flow Assessment:
   With current liabilities exceeding current assets, the company lacks adequate liquidity to cover short-term obligations, which is a significant risk indicator. The single director and sole shareholder structure may limit access to additional capital unless personally injected. No off-balance sheet liabilities or contingent liabilities are disclosed, but the micro size and early stage raise concerns about cash generation capability. Without positive operating cash flow or external funding sources, ongoing liquidity risk remains high.

4. Monitoring Points:

• Track subsequent filings for revenue generation and profitability improvements.
• Monitor working capital trends and liquidity ratios in upcoming accounts.
• Assess director’s ability or willingness to inject further capital if needed.
• Review any new credit facilities or guarantees that might improve financial stability.
• Watch for timely filing of accounts and confirmation statements as a governance indicator.