P & K PROPERTY DEVELOPERS LTD

Executive Summary

P & K Property Developers Ltd is a start-up construction company with a weak initial financial position, evidenced by negative net assets and a working capital deficit. The company relies on creditor support and has limited liquidity, making it unsuitable for credit facilities at this time. Close monitoring of cash flows and future financial performance is essential before reconsidering credit risk.

P & K PROPERTY DEVELOPERS LTD - Analysis Report

Company Number: 14808925

Analysis Date: 2025-07-29 20:58 UTC

1. Credit Opinion: DECLINE
   P & K Property Developers Ltd is a newly incorporated private limited company (since April 2023) engaged in domestic building construction. Its first set of filed accounts (to April 2024) show a net current liability position and negative shareholders’ funds, indicating an initial financial deficit. The company’s current liabilities (£601,385) exceed its current assets (£598,098), resulting in a small working capital deficit (-£3,287). The directors acknowledge this but rely on continued financial support from creditors to maintain going concern status. Given the absence of trading history, negative net assets at inception, and reliance on creditor support, the company currently lacks sufficient financial strength and liquidity to confidently service debt or credit facilities. Therefore, credit approval is not recommended at this stage.

2. Financial Strength:
   The balance sheet reveals total current assets of £598k, predominately stocks (£545k), with minimal cash (£50k) and debtors (£2.6k). Current liabilities are slightly higher than current assets, leading to negative net current assets (-£3,287) and negative equity (-£3,289). The company has no fixed assets and negligible share capital (£2). The deficit is typical for a start-up in an asset-heavy sector but highlights weak financial footing. No evidence of profitability or retained earnings exists yet.

3. Cash Flow Assessment:
   Cash on hand is low (£50k) relative to short-term liabilities (£601k), indicating limited liquidity. The working capital deficit suggests the company may face challenges meeting short-term obligations without additional funding or creditor support. Absence of employees and minimal debtors imply limited operational cash inflows currently. The company will need to secure further cash injections or timely payments from customers to improve liquidity.

4. Monitoring Points:

• Monitor future trading results and cash flow statements to assess operational cash generation.
• Track changes in working capital—particularly stock turnover and creditor days—to identify liquidity improvements or deteriorations.
• Review subsequent financial filings for evidence of capital injections or loan facilities.
• Assess management’s ability to reduce liabilities or increase assets to strengthen the balance sheet.
• Watch for timely payment of statutory filings and absence of director conduct issues.