P & S JOINERS LTD

Executive Summary

P & S JOINERS LTD exhibits significant financial stress, with negative net assets and working capital deficits that raise serious solvency and liquidity concerns. While regulatory filings are current and directors appear stable, the lack of fixed assets and employees questions operational sustainability. Further due diligence is needed to clarify the company’s financial obligations and operational model before considering investment.

P & S JOINERS LTD - Analysis Report

Company Number: 13108653

Analysis Date: 2025-07-20 13:20 UTC

1. Risk Rating: HIGH

Justification: The company shows negative net current assets and net assets, indicating a potential insolvency risk. The liabilities exceed current assets, and shareholders' funds are negative, which is a significant red flag for solvency and liquidity.

2. Key Concerns:

• Negative Net Assets: The balance sheet shows net assets of -£3,310 as of January 2024, worsening from -£1,175 in 2023, implying accumulated losses and erosion of equity.
• Working Capital Deficit: Current liabilities (£3,678) exceed current assets (£1,193), resulting in a negative net working capital of -£2,485, indicating liquidity pressure to meet short-term obligations.
• No Fixed Assets or Employees: The absence of fixed assets and zero employees suggests limited operational capacity or asset base, raising concerns about the sustainability of business operations.

3. Positive Indicators:

• Compliance: The company is up to date with filing its annual accounts and confirmation statements, indicating regulatory compliance.
• Established Directors: Two directors with significant ownership and voting rights appear stable and have not been flagged for disqualification.
• Business Continuity: The company has been active since 2021 without entering liquidation or administration.

4. Due Diligence Notes:

• Investigate the nature of current liabilities and any overdue payments or creditor disputes.
• Review cash flow statements and bank transaction history (if available) to assess liquidity beyond the balance sheet snapshot.
• Confirm operational activity given zero employees and no fixed assets—determine if services are subcontracted or if the business is dormant in all but name.
• Verify that no director disqualifications or governance issues exist beyond publicly available data.
• Request management commentary or strategic plans addressing the financial deterioration and steps to restore solvency.