PANELCRAFT RESTORATION LTD

Executive Summary

PANELCRAFT RESTORATION LTD’s financial position has declined sharply over the past year, with a negative working capital and net asset deficit raising serious concerns about its ability to meet financial obligations. Given these indicators, extending credit would carry substantial risk. Close monitoring of liquidity and solvency metrics is essential going forward.

PANELCRAFT RESTORATION LTD - Analysis Report

Company Number: 14070313

Analysis Date: 2025-07-29 17:00 UTC

1. Credit Opinion: DECLINE
   PANELCRAFT RESTORATION LTD presents significant credit risk. The latest accounts show a drastic deterioration in financial position with net liabilities of £47,584 as of April 2024, compared to net assets of £13,402 a year earlier. The company’s current liabilities have nearly doubled to £117,213, while current assets have fallen substantially, leading to a large negative working capital position of -£81,944. This suggests an inability to meet short-term obligations comfortably. Given this negative net asset base and strained liquidity, the company’s capacity to service additional debt or credit facilities is questionable.

2. Financial Strength:
   The company’s balance sheet weakened markedly from 2023 to 2024. Fixed assets have decreased slightly, but current liabilities increased sharply, outweighing current assets. The net current assets turned negative, indicating working capital deficiency. There are no long-term creditors reported in 2024, but total net assets are negative, reflecting an erosion of shareholder funds. The decline from positive equity to a deficit in one year is a red flag for financial stability and solvency concerns.

3. Cash Flow Assessment:
   The negative net current assets of -£81,944 suggest stressed liquidity. The decline in current assets from £39,301 to £22,932, alongside a sharp rise in creditors, implies cash flow problems or delayed payments. The company’s small size and micro-entity classification, with only 2 employees, limit operational scale, which may exacerbate cash flow volatility. No explicit cash flow statements are provided, but the working capital trend indicates potential difficulties in meeting short-term liabilities and operational expenses.

4. Monitoring Points:

• Watch for improvement or further deterioration in net current assets and net asset position in the next accounts.
• Monitor creditor balances and payment terms to suppliers closely.
• Review cash generation or burn rates once cash flow data becomes available.
• Assess any strategic or operational changes made by management to restore financial health.
• Confirm whether any new financing has been arranged and its terms to gauge future liquidity.