P & L STEPHENSON PROPERTIES LIMITED

Executive Summary

P & L Stephenson Properties Limited exhibits critical liquidity and solvency weaknesses, with negligible net assets and current liabilities substantially exceeding current assets. The company’s financial position does not support additional credit due to insufficient working capital and lack of equity cushion. Without significant improvement in cash flow or capital structure, the risk of default is elevated.

P & L STEPHENSON PROPERTIES LIMITED - Analysis Report

Company Number: 12647415

Analysis Date: 2025-07-20 14:57 UTC

1. Credit Opinion: DECLINE
   P & L Stephenson Properties Limited demonstrates an extremely weak financial position with net assets of only £2 as at 31 March 2024. Their current liabilities (£155,027) vastly exceed current assets (£29), indicating severe liquidity constraints and an inability to meet short-term obligations without additional financing. The company operates in real estate management but has not shown any appreciable growth or profitability trends. The consistent minimal net asset base and negligible equity raise concerns about the company’s capacity to service debt or sustain operations under stress.

2. Financial Strength:
   The balance sheet reveals fixed assets valued at £155,000, but these are offset almost entirely by current liabilities, leaving net assets at a marginal £2. The company’s equity is limited to £2 share capital, with no retained earnings or reserves, indicating that any financial setbacks could erode the capital base. The micro-entity classification confirms the company’s small scale, and the lack of accumulated profits highlights limited financial buffer. The minimal current assets (£29) versus high current liabilities suggest a mismatch in working capital management.

3. Cash Flow Assessment:
   The company’s liquidity is critically weak. Current assets primarily consist of nominal cash or receivables insufficient to cover immediate liabilities, which stand at over £155k. There is no indication of cash flow from operations or other income streams to alleviate liquidity pressure. Given the absence of detailed profit and loss data but the static net asset position over multiple years, it is likely the company struggles with cash inflows. The working capital deficit effectively restricts operational flexibility and raises default risk on any credit facility.

4. Monitoring Points:

• Liquidity and current ratio improvements: watch for increased current assets or reductions in current liabilities.
• Profitability or cash flow from operations to support debt servicing.
• Changes in fixed asset valuations or disposals impacting net asset base.
• Directors’ strategy for capital infusion or debt restructuring.
• Timeliness and completeness of future filings to monitor financial health trends.