P & R HOME IMPROVEMENTS LTD

Executive Summary

P & R HOME IMPROVEMENTS LTD shows significant financial weakening with negative equity and insufficient current assets to cover liabilities, indicating liquidity risk and poor creditworthiness. Without clear improvements in working capital or capital injection, extending credit would carry a high risk of default. Close monitoring of cash flows and creditor payments is essential if reconsidering credit exposure.

P & R HOME IMPROVEMENTS LTD - Analysis Report

Company Number: 12864293

Analysis Date: 2025-07-29 19:37 UTC

1. Credit Opinion: DECLINE. The company exhibits a significant deterioration in financial position over the latest financial year with shareholders’ funds turning negative (£-6,151) from positive (£7,001) in the prior year. Current liabilities remain high (£23,972) relative to current assets (£12,219), resulting in negative working capital and raising concerns about liquidity and repayment capacity. The absence of employees and minimal fixed assets suggest limited operational scale. Overall, the company’s financial profile indicates weak creditworthiness and heightened risk for lending.

2. Financial Strength: The balance sheet shows total assets of £17,821 against current liabilities of £23,972, resulting in net current liabilities of approximately £-11,753. Shareholders’ funds have declined sharply from £7,001 to a deficit of £6,151, evidencing an erosion of equity capital. The company is classified as a micro entity and continues to have minimal fixed assets (£5,602). This negative net asset position signals financial distress and potential insolvency risk if the trend persists.

3. Cash Flow Assessment: Current assets are predominantly short-term but insufficient to cover current liabilities, suggesting liquidity constraints. The company’s working capital deficiency indicates potential difficulties in meeting short-term obligations without additional financing or owner support. No employees are reported, which may reduce operating expenses but also implies limited business activity and cash generation. The lack of audit and micro-entity reporting reduces transparency on cash flow specifics.

4. Monitoring Points:

• Track quarterly cash flow statements for liquidity improvements or further deterioration.
• Monitor changes in current liabilities and creditor payment behavior.
• Watch for any director or shareholder capital injections to restore equity.
• Assess operating performance for signs of increased revenue or margins.
• Review any changes in company status or overdue filings which could signal distress.