PEARCROFT DEVELOPMENTS 3 LIMITED

Executive Summary

Pearcroft Developments 3 Limited is a recently incorporated private company in the building development sector with early-stage financials showing a net liability position and working capital deficit. While regulatory compliance is up to date, the company’s solvency and liquidity are concerns due to negative shareholders' funds and current liabilities exceeding assets. Further examination of loan structures, debtor quality, and director support is essential to assess ongoing operational viability.

PEARCROFT DEVELOPMENTS 3 LIMITED - Analysis Report

Company Number: 14217902

Analysis Date: 2025-07-20 17:08 UTC

1. Risk Rating: HIGH
   The company shows negative net current assets and shareholders' funds, indicating a net liability position. The current liabilities exceed current assets, suggesting potential solvency and liquidity issues given the company's short operating history.

2. Key Concerns:

• Negative Net Current Assets: £(2,187) indicates inability to cover short-term liabilities with current assets.
• Negative Shareholders' Funds: £(2,287) signals accumulated losses or insufficient capital, undermining solvency.
• Reliance on Director Support: Financial statements prepared on a going concern basis assuming continued director and investor support, which may not be guaranteed.

3. Positive Indicators:

• Compliance: No overdue filings or accounts, demonstrating adherence to regulatory requirements.
• Industry Focus: Operating in development of building projects, a sector with potential growth if managed well.
• Simple Corporate Structure: Single director with majority control, allowing for straightforward decision-making.

4. Due Diligence Notes:

• Investigate nature and collectability of debtors (£30,039) and whether these are secured or related party loans.
• Clarify composition and terms of loans within current liabilities (£88,170 other loans) to assess repayment risk.
• Review director and shareholder commitments to provide further capital or loan support if needed.
• Assess cash flow forecasts and project pipeline to understand operational sustainability and timing of cash inflows.
• Confirm no director disqualifications or regulatory breaches given sole director status.