P1 PROPERTY SOLUTIONS LIMITED

Executive Summary

P1 PROPERTY SOLUTIONS LIMITED exhibits a weak financial position with negative net assets and a working capital deficit, making it unable to reliably service debt at this early stage. The company’s micro size and limited operational history increase credit risk. Credit facilities should be declined until there is evidence of improved financial stability and liquidity.

P1 PROPERTY SOLUTIONS LIMITED - Analysis Report

Company Number: 14469297

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

1. Credit Opinion: DECLINE
   P1 PROPERTY SOLUTIONS LIMITED is a newly incorporated micro-entity with minimal financial history. The latest accounts as of 30 November 2023 show negative net current assets of £2,070 and negative net assets of the same amount, indicating a working capital deficit and an overall negative equity position. This suggests the company is currently financially fragile and unable to cover short-term liabilities with available current assets. Given the lack of accumulated profits, limited asset base, and the micro size of the company, it poses a high credit risk. Without evidence of additional funding or strong cash flow projections, extending credit facilities would be imprudent.

2. Financial Strength:
   The balance sheet reflects a weak financial position. Current liabilities of £5,600 exceed current assets of £3,530, resulting in net current liabilities of £2,070. Total net assets are negative £2,070, implying the company is technically insolvent on a balance sheet basis at the reporting date. There are no fixed assets or other significant resources to buffer financial stress. Shareholders funds are also negative, and the company has a very small capital base. The size and scale (micro entity with only 2 employees) limit operational flexibility and financial resilience.

3. Cash Flow Assessment:
   Limited information is available on cash flow, but the working capital deficit indicates liquidity pressure. Current liabilities surpass current assets, which implies the company may struggle to meet short-term obligations as they fall due. The absence of fixed assets or retained earnings means there is no cushion to absorb cash flow fluctuations. The company’s ability to generate positive operating cash flow remains unproven, increasing the risk of default on any credit facility.

4. Monitoring Points:

• Quarterly review of updated financial statements to track any improvement in net assets and working capital.
• Monitoring incoming cash flows relative to current liabilities to assess liquidity trends.
• Watch for any director or shareholder injections of capital or loans to strengthen the balance sheet.
• Review of business growth indicators, such as turnover and contract wins, to evaluate operational progress.
• Confirmation that statutory filings remain timely to reduce compliance risk.