P&E CONSULTANCY SERVICES LIMITED

Executive Summary

P&E Consultancy Services Limited presents a low risk profile based on its solid and improving balance sheet, strong liquidity, and timely regulatory compliance. The principal area for investor attention is the substantial related party loan, which requires further scrutiny regarding its recoverability. Overall, the company appears financially stable and operationally sound within the scope of available information.

P&E CONSULTANCY SERVICES LIMITED - Analysis Report

Company Number: 12705231

Analysis Date: 2025-07-20 14:57 UTC

1. Risk Rating: LOW

Justification: P&E Consultancy Services Limited demonstrates a strong and improving financial position, with positive net current assets and growing shareholders’ funds over recent years. The company is current with all statutory filings and shows no signs of financial distress or regulatory non-compliance. The liquidity position is solid, supported by a healthy cash balance and manageable current liabilities.

2. Key Concerns:

• Related Party Loans: The company has a significant outstanding loan balance (£101,956 as of June 2024) to Tulstik Properties Limited, a related party. This concentration risk could impact liquidity if the loan is not repaid on time or if the related party encounters financial difficulties.
• Limited Financial Disclosure: The accounts are unaudited and prepared under the small companies regime with limited disclosure of profitability, cash flow details, or contingent liabilities, restricting a full assessment of operational performance and sustainability.
• Small Employee Base: The company operates with only two employees on average, which may pose operational risk if key personnel are unavailable or if there are plans to scale up without corresponding resource planning.

3. Positive Indicators:

• Consistent Growth in Net Current Assets and Shareholders’ Funds: The company’s net current assets increased from £24,365 in 2020 to £201,064 in 2024, indicating improved working capital management and financial strength.
• Strong Liquidity Position: Cash and cash equivalents increased to £102,708 in 2024, providing ample short-term liquidity to meet obligations.
• Compliance Status: No overdue filings or penalties noted; the company has filed accounts and confirmation statements timely, reflecting good governance and regulatory compliance.
• Stable Ownership and Management: Directors have been in place since incorporation with no resignations or disqualifications, suggesting stable leadership.

4. Due Diligence Notes:

• Investigate the nature, terms, and collectability of the related party loan to Tulstik Properties Limited, including any repayment schedule or collateral.
• Obtain or review management accounts or profit and loss statements to assess profitability, operational cash flow, and sustainability beyond balance sheet strength.
• Confirm if any contingent liabilities or off-balance sheet commitments exist that could affect financial stability.
• Assess the company’s dependency on key personnel and plans for workforce expansion or succession.
• Verify the absence of any director disqualification or negative conduct records not apparent from the current data.