PARK LANE (MAYFAIR) LIMITED

Executive Summary

PARK LANE (MAYFAIR) LIMITED exhibits a weak financial position with net liabilities and negative working capital, raising significant concerns about its ability to meet short-term obligations. The company’s cash reserves have declined sharply, and its balance sheet shows accumulated losses without tangible asset support. Given these factors, credit facilities should be declined unless substantial financial improvement or capital support is demonstrated.

PARK LANE (MAYFAIR) LIMITED - Analysis Report

Company Number: 13546177

Analysis Date: 2025-07-29 19:00 UTC

1. Credit Opinion: DECLINE
   PARK LANE (MAYFAIR) LIMITED shows a deteriorating financial position with net liabilities of £8,715 as of 31 August 2024, down from net assets of £1 the previous year. The company’s current liabilities significantly exceed current assets, resulting in negative net current assets of £9,390. This indicates poor short-term liquidity and an inability to comfortably meet its obligations as they fall due. The lack of profitability and the negative retained earnings (profit and loss account deficit) raise concerns about the company’s capacity to service debt or sustain credit facilities without additional capital injection or operational turnaround.

2. Financial Strength:
   The balance sheet is weak with minimal equity (£1 share capital) and accumulated losses of £8,716. Tangible fixed assets are negligible (£675), and the company relies heavily on short-term financing, as evidenced by high trade creditors and other creditors. The decline in cash from £111,598 in 2023 to £67,985 in 2024 further weakens financial stability. The company has no long-term assets or reserves to buffer financial stress. Overall, the financial strength is poor, indicating a high risk profile.

3. Cash Flow Assessment:
   Cash and cash equivalents have decreased by approximately 40% year-on-year, while current liabilities have reduced but remain substantially higher than current assets. Current liabilities are mostly short-term trade creditors and tax obligations, suggesting the company may be delaying payments or relying on supplier credit. The working capital position is negative, and with only one employee (the director), operational scale is very limited. Cash flow constraints are evident, and without improvement in receivables collection or reduction in payables, liquidity risk remains elevated.

4. Monitoring Points:

• Track cash balance trends and working capital position closely to detect further deterioration.
• Monitor trade creditors and tax liabilities for signs of payment delays or disputes.
• Review turnover and profitability trends when available to assess operational improvements.
• Watch for capital injections or restructuring activities indicating management’s response to financial distress.
• Review director conduct and any changes in ownership or control that might affect governance and credit risk.