Company Number: 13099738

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

Financial Health Assessment of Pejodelo Limited (Year Ending 31 December 2024)

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1. Financial Health Score: D

Explanation:
Pejodelo Limited’s financial condition shows worrying symptoms of distress mainly due to persistent negative net assets (shareholders’ funds) and significant net current liabilities. While the company owns fixed assets valued at £138,789, it is heavily outweighed by current and long-term liabilities, resulting in a negative equity position. The financial health grade "D" reflects a fragile state, requiring urgent remedial actions to avoid further deterioration.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Fixed Assets	£138,789	Reasonable asset base mainly in property or equipment; a positive sign akin to a strong bone structure.
Current Assets	£12,607	Low liquid assets (cash, receivables) indicating limited short-term cash availability.
Current Liabilities	£67,869	High short-term obligations, creating pressure on immediate cash flow.
Net Current Assets	-£55,262	Negative working capital ("unhealthy blood flow"), implying the company may struggle to pay short-term debts.
Long-term Liabilities	£102,070	Significant debt obligations due after one year, indicating financial leverage.
Net Assets (Equity)	-£18,543	Negative net worth ("weak heart"), showing liabilities exceed assets, a critical red flag.
Share Capital	£100	Very small capital base, implying limited cushion against losses.
Average Employees	1	Micro company scale, likely dependent on owner/director operations.

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3. Diagnosis: What the Financial Data Reveals

• Symptoms of Financial Distress: The company exhibits persistent negative net assets over the last three years, signaling accumulated losses or liabilities exceeding asset values. This is akin to a patient with chronic illness requiring ongoing treatment.
• Poor Liquidity Position: Negative net current assets indicate that Pejodelo Limited does not have enough liquid resources to cover immediate debts, raising risk of cash flow crises.
• Heavy Debt Burden: Both current and long-term liabilities are substantial relative to the company’s assets, indicating dependency on borrowed funds and potential solvency risk if revenue generation is insufficient.
• Asset Base Stability: Fixed assets remain stable at around £138k, which is a positive foundation. However, without improving liquidity and reducing liabilities, these assets may be at risk of forced sale or impairment.
• Micro Entity Profile: The company’s small size and minimal staffing (one employee) suggest limited operational scale and possibly limited revenue streams, which may explain financial strain.
• Owner Control: Mr. Peter-John Delmont owns 75-100% of shares and controls voting rights, centralizing decision-making but also concentration of financial risk.

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4. Recommendations: Steps to Improve Financial Wellness

• Improve Cash Flow Management: Prioritize collection of receivables and control operating expenses to enhance current assets and reduce net current liabilities.
• Restructure Debt: Engage with creditors to renegotiate terms, potentially converting some short-term liabilities to longer-term debt to ease liquidity pressures.
• Capital Injection: Consider infusion of additional equity capital to restore positive net assets and provide a buffer against losses.
• Asset Utilization: Review fixed assets for potential monetization or more efficient use to generate income or reduce debt.
• Strategic Business Review: Analyze revenue streams and cost structures; explore new markets or services to increase turnover and profitability.
• Financial Monitoring: Implement regular financial health checks (monthly cash flow forecasts, quarterly financial reviews) to detect early warning signs and respond promptly.
• Professional Advice: Consider consulting financial or restructuring specialists to design a turnaround plan tailored to the company’s circumstances.

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