Company Number: 14527317

Analysis Date: 2025-07-29 14:03 UTC

1. Credit Opinion: DECLINE
   Pear Tree Close Property Management Limited currently exhibits very weak financial health. The company has minimal working capital (£21) and shareholders’ funds (£21) as of June 2024, after previously showing significant negative equity and net current liabilities at the end of 2023. The rapid reversal from negative £6,791 net current assets to just £21 indicates either a short-term financial restructuring or delayed creditor payments rather than genuine financial strength. Operating in real estate management with no turnover or reported profits and no cash holdings at the latest reporting date raises concerns about its ability to service debt or meet commercial obligations reliably. The company is very young (incorporated Dec 2022) and has experienced director turnover mid-2024, which may indicate management instability. Given these factors and limited financial history, the risk of default is high.

2. Financial Strength:
   The balance sheet shows negligible tangible fixed assets (fully depreciated fixtures and fittings) and almost no cash as of June 2024. Debtors of £1,538 slightly exceed current liabilities of £1,517, resulting in marginal positive net current assets. However, previous filings showed negative net current assets and negative equity around £6,800, signaling prior financial distress. Shareholders' funds are minimal and barely positive (£21), indicating a lack of retained earnings or capital injection. The company's equity position remains fragile and highly susceptible to operational disruption or creditor pressure.

3. Cash Flow Assessment:
   Cash at bank dropped from £1,845 in December 2023 to zero by June 2024 despite a slight increase in debtors. This suggests cash depletion and poor liquidity management. Working capital is effectively zero, which constrains the company’s ability to absorb unforeseen expenses or delays in collections. The lack of reported turnover or profit generation implies dependence on external funding or related party transactions to maintain operations. The minimal cash reserves and tight creditor balances reduce confidence in the company’s ability to meet short-term liabilities or service new debt.

4. Monitoring Points:

• Monitor subsequent cash flow statements and turnover growth to assess operational viability.
• Watch for director changes or further governance issues that may impact management continuity.
• Review creditor aging to detect any payment delays or disputes.
• Track any new capital injections or related party loans that may temporarily mask financial weakness.
• Evaluate forthcoming annual accounts for signs of profitability or improved liquidity.