PAG SCAFFOLDING LTD

Executive Summary

PAG Scaffolding Ltd is currently facing high financial risk as indicated by its negative net asset position and worsening working capital deficit within two years of operation. While the company complies with regulatory filings and benefits from sole ownership, its limited scale and deteriorating financial metrics raise concerns about its short-term liquidity and operational sustainability. Further detailed financial and operational due diligence is recommended to assess the viability of this business.

PAG SCAFFOLDING LTD - Analysis Report

Company Number: 14094314

Analysis Date: 2025-07-20 14:08 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, reflected in negative net assets and worsening net current liabilities. The financial position deteriorated from a positive net asset balance in 2023 to a negative one in 2024 within a short time frame, signaling elevated financial risk.

2. Key Concerns:

• Negative Net Assets: The net assets position declined from £1,803 in 2023 to -£2,983 in 2024, indicating erosion of shareholder equity and potential insolvency risk.
• Negative Working Capital: Net current assets worsened from -£6,510 to -£11,477, showing increased short-term liabilities exceeding current assets, which could impair the company’s ability to meet immediate obligations.
• Small Scale and Limited Workforce: The company operates with an average of only 1 employee, suggesting limited operational capacity and potential vulnerability to market or operational disruptions.

3. Positive Indicators:

• Compliance with Filing Requirements: No overdue accounts or confirmation statements were noted, demonstrating adherence to statutory filing deadlines and regulatory compliance.
• Sole Ownership and Control: The director, Mr. George Lucian Pirvu, holds 75-100% of shares and voting rights, ensuring clear decision-making authority without shareholder disputes.
• Industry Focus: The company operates in scaffold erection, a specialized niche that can have steady demand in construction sectors, which may support future revenue generation if operational issues are addressed.

4. Due Diligence Notes:

• Investigate Causes of Financial Decline: Detailed review of income statements, cash flows, and creditor aging to understand drivers behind asset erosion and increased liabilities.
• Assess Cash Flow and Funding Sources: Clarify how the company is financing operations given the negative working capital and whether external funding or director loans are supporting liquidity.
• Evaluate Business Model and Contract Pipeline: Examine the sustainability of the business model, client base, and future contracts to assess prospects for turnaround or ongoing viability.
• Director Background and Related Party Transactions: Given sole director control, confirm no undisclosed related party transactions or conflicts of interest impacting financial health.