PD PROPERTY REPORTS LIMITED

Executive Summary

PD PROPERTY REPORTS LIMITED is currently in a fragile financial condition, exhibiting significant liquidity issues and negative net worth shortly after incorporation. Immediate attention to cash flow management, capital strengthening, and operational efficiency is essential to prevent insolvency and stabilize the business. Without swift corrective action, the company’s financial prognosis remains uncertain and risky.

PD PROPERTY REPORTS LIMITED - Analysis Report

Company Number: 14655029

Analysis Date: 2025-07-29 16:56 UTC

Financial Health Assessment for PD PROPERTY REPORTS LIMITED

---

1. Financial Health Score: D

Explanation:
The company displays significant financial distress indicators, primarily due to negative net assets and net current liabilities. While the company is newly established (incorporated in 2023), the balance sheet shows a precarious financial position suggesting challenges in liquidity and solvency. The score "D" reflects a warning zone where immediate corrective actions are necessary to restore financial health.

---

2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	19,749	Modest investment in tangible assets, showing some capital expenditure.
Current Assets	17,962	Includes cash and debtors; relatively low and insufficient to cover short-term liabilities.
Cash	10,180	Cash on hand is limited and may not sustain operational needs for long without inflows.
Debtors	7,782	Amount owed by customers; cash flow depends on timely collection.
Current Liabilities	68,376	Short-term debts significantly exceed current assets, indicating liquidity stress.
Net Current Assets	-50,414	Negative working capital points to inability to meet short-term obligations from liquid assets.
Net Assets (Shareholders' Funds)	-30,665	Negative net assets denote insolvency on a balance sheet basis; liabilities exceed assets.
Share Capital	1	Minimal equity investment; low buffer for losses.

Key Observations:

• Negative Net Current Assets (Working Capital Deficit): The company’s current liabilities exceed current assets by over £50,000, a critical symptom of liquidity distress. This “cash flow” deficiency suggests the business may struggle to pay its immediate debts without additional financing or improved collections.
• Negative Net Assets: The company’s total liabilities exceed its assets by approximately £30,665, indicating a balance sheet insolvency. This is a serious red flag, especially for a newly incorporated entity.
• Low Equity Base: Only £1 in share capital and large losses retained in the profit and loss reserve indicate limited financial cushioning.

---

3. Diagnosis

PD PROPERTY REPORTS LIMITED is in the early stages of its financial life cycle but shows significant symptoms of financial distress. The vital signs indicate the company is operating with a working capital deficit and negative net worth. This condition is akin to a patient with a weak heartbeat and low blood pressure—critical signs that require immediate intervention.

The company’s negative net current assets suggest it may face difficulties in meeting its short-term obligations, risking default on creditors or suppliers. The negative shareholders’ funds imply the business is technically insolvent, which can affect its ability to secure external funding or credit.

Factors contributing to this state may include startup costs, undercapitalization, or delays in revenue generation and debtor collection. The single director is also the sole person with significant control, concentrating risk but potentially expediting decision-making.

---

4. Recommendations

To improve the financial wellness of PD PROPERTY REPORTS LIMITED, consider the following:

1. Improve Liquidity and Working Capital Management:

   • Accelerate debtor collections and negotiate extended payment terms with creditors to ease cash flow pressures.
   • Explore short-term financing options such as overdrafts or invoice factoring to cover immediate liabilities.

2. Strengthen Equity Base:

   • Consider a capital injection from the shareholder or new investors to bolster net assets and provide a financial buffer.

3. Cost Control and Revenue Generation:

   • Review operating expenses carefully; control discretionary spending to conserve cash.
   • Enhance sales efforts to increase turnover and improve cash inflow velocity.

4. Financial Monitoring and Reporting:

   • Implement regular cash flow forecasting to anticipate liquidity issues before they arise.
   • Maintain clear and timely financial reporting to enable proactive management decisions.

5. Strategic Planning:

   • Assess business model viability and market positioning to ensure sustainable revenue streams.
   • Seek professional advice on restructuring or turnaround strategies if conditions do not improve.

---