PCP VI (A) LIMITED

Executive Summary

PCP VI (A) LIMITED’s initial financial position is weak, with negative equity and working capital deficits driven by intercompany liabilities and group-level secured debt. The company currently lacks standalone financial strength and liquidity to support new credit without external support. Careful monitoring of cash flow improvements and group funding arrangements is essential before reconsidering credit facilities.

PCP VI (A) LIMITED - Analysis Report

Company Number: 14616251

Analysis Date: 2025-07-29 18:47 UTC

1. Credit Opinion: DECLINE. PCP VI (A) LIMITED is a newly incorporated entity (2023) engaged in real estate letting and operating activities. The latest financials show net current liabilities of £31,876 and negative shareholders’ funds of the same amount, indicating an immediate working capital deficit and a balance sheet in a weak financial position. The company’s liabilities within one year (£285k) exceed its debtors (£253k), and the absence of fixed assets or other tangible asset values raises concerns about collateral availability. Moreover, the significant related-party debt (£281k owed to group undertakings) and a large secured debt charge of £12.36m on group assets suggest dependency on the wider group’s financial support rather than standalone strength. Given the negative equity and liquidity shortfall, the company has a limited ability to service any new credit facilities without strong external support.

2. Financial Strength: The balance sheet reflects a small operation with limited tangible assets and a negative net asset position (£-31,876). The company’s equity is fully eroded by accumulated losses, and current liabilities exceed current assets. The £12.36 million secured debt relates to group-level borrowings secured on company assets, which could restrict flexibility and increases risk exposure. The company’s financial structure is reliant on capital injections or intercompany funding and shows no signs of profitability or asset accumulation as yet.

3. Cash Flow Assessment: The company’s cash flow position is strained, with net current liabilities indicating working capital pressure. Debtors (£253k) are slightly less than current liabilities (£285k), and there are no indications of cash reserves or significant liquid assets. The reliance on amounts owed to group undertakings suggests internal funding is supporting operations rather than operating cash generation. The lack of detailed profit and loss data makes a comprehensive cash flow analysis difficult, but the negative working capital and negative equity highlight liquidity risk.

4. Monitoring Points:

• Monitor quarterly management accounts for improvements in net current assets and positive cash flow generation.
• Watch for any additional intercompany loans or capital injections that may support liquidity.
• Track changes in related-party balances and secured debt obligations, especially the £12.36m charge on assets.
• Review any future filing of profit and loss accounts to assess operational profitability and cash generation.
• Evaluate director and shareholder actions addressing the negative equity and working capital shortfall.