PCP VI (C) LIMITED

Executive Summary

PCP VI (C) LIMITED has a strong asset base in investment property but faces liquidity challenges due to high current liabilities and dependence on related party and secured loans. The company is newly established with limited operational data, necessitating further review of cash flows and debt arrangements. Overall, the risk profile is medium with asset backing somewhat mitigating short-term financial pressures.

PCP VI (C) LIMITED - Analysis Report

Company Number: 14616222

Analysis Date: 2025-07-29 18:57 UTC

1. Risk Rating: MEDIUM
   The company shows a strong asset base predominantly in investment property (£21.67M) but has significant current liabilities exceeding current assets by over £9M, indicating liquidity strain. The company is recently incorporated (2023) with limited financial history and relies on related party loans. While net assets are positive (£3.09M), the high short-term liabilities and reliance on secured debt present moderate solvency and liquidity risks.

2. Key Concerns:

• Significant net current liabilities (£-9.1M) reflecting potential short-term liquidity issues.
• Heavy reliance on related party loans (£9.29M current and £8.46M non-current bank loans secured), indicating financing concentrated within group entities and potential refinancing risk.
• Company is newly formed with no profit & loss statement disclosed, limiting visibility on operational cash flows or profitability.

3. Positive Indicators:

• Substantial fixed assets primarily investment property valued at £21.67M with recent revaluation surplus, supporting asset backing.
• Positive net assets and shareholders funds of £3.09M, indicating equity buffer above liabilities.
• Directors are qualified professionals (accountant, solicitor, chartered surveyor) suggesting experienced governance.

4. Due Diligence Notes:

• Review the underlying tenancy agreements and income streams from the investment property to assess operational cash flow sustainability.
• Investigate terms and conditions of related party loans and bank loans to understand repayment schedules, covenants, and refinancing risks.
• Obtain management accounts or forecasts to evaluate ongoing liquidity and profitability since incorporation.
• Confirm no overdue filings or compliance issues beyond those disclosed; current filings are up to date.