PATRICK STEPHEN LIMITED

Executive Summary

Patrick Stephen Limited is a newly incorporated micro-entity exhibiting persistent financial weakness, with negative net assets and poor liquidity. The company’s current balance sheet and cash flow position do not support reliable debt servicing capability, resulting in a credit decline recommendation. Close monitoring of short-term financial improvements and potential capital support would be essential for reconsideration.

PATRICK STEPHEN LIMITED - Analysis Report

Company Number: 14309735

Analysis Date: 2025-07-20 17:55 UTC

1. Credit Opinion: DECLINE
   Patrick Stephen Limited shows persistent negative net assets and net current assets (liabilities) over the last three years, indicating a weak financial position and ongoing losses. The company’s liabilities exceed its current assets by a substantial margin (£2,948 at latest year-end), evidencing poor liquidity and potential cash flow difficulties. Given the absence of employees and minimal current assets (less than £1,000), the company lacks operational scale or financial buffer to service debt obligations reliably. The sole director and 100% owner, Mr. Liam Ryan, while experienced as CEO, does not mitigate the financial risk posed by the negative equity and working capital deficits. Without evidence of a clear turnaround plan or capital injection, extending credit would be high risk.

2. Financial Strength:
   The balance sheet reveals significant financial weakness. Net liabilities increased from £2,101 in 2022 to £2,948 in 2024. Current liabilities have grown slightly, while current assets have decreased, resulting in a deteriorated net working capital position. The company holds no fixed assets, and shareholder funds are deeply negative, indicating accumulated losses or insufficient capital contributions. This places the company in a technically insolvent position on a balance sheet basis, undermining financial resilience.

3. Cash Flow Assessment:
   The company’s micro-entity accounts show minimal current assets (£543 as of 2024 year-end), primarily cash or equivalents, which are inadequate to cover short-term liabilities of £3,491. Negative net current assets suggest ongoing liquidity pressure and potential difficulty meeting immediate creditor demands. The absence of employees and lack of audit exemption filings limit insight into operational cash flow, but results suggest limited cash inflows from business activities. Working capital management appears weak, increasing credit risk.

4. Monitoring Points:

• Monitor quarterly or interim financial updates for improvements in net assets and liquidity.
• Watch creditor days and any overdue payables that might indicate worsening cash flow.
• Assess any capital injections or shareholder loans that could strengthen equity.
• Track business activity growth or contract wins that might improve cash generation.
• Review director conduct and any changes in management strategy or financial controls.