Company Number: 14757697

Analysis Date: 2025-07-20 11:24 UTC

Financial Health Assessment for PEMEC REFRIGERATION LIMITED

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1. Financial Health Score: D

Explanation:
The company is a newly incorporated private limited company classified as dormant, with minimal financial activity and negligible financial resources (£6 cash and net assets). This results in a very low financial health score. While there are no immediate signs of distress, the company is effectively in a "pre-operational" or "hibernation" phase with minimal financial vitality.

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2. Key Vital Signs

Metric	Value	Interpretation
Company Age	~1 year	Newly established
Status	Active	Operating but dormant
Account Category	Dormant	No significant transactions
Cash at bank	£6	Extremely low liquidity
Net Assets	£6	Minimal equity base
Share Capital	£6	Nominal initial investment
Directors	2 current	Active governance in place
Significant Control	Multiple PSCs	Diverse ownership control
Industry Classification	Plumbing, heat and air-conditioning installation	Specific industry sector

Interpretation:

• Dormant status indicates the company has not traded or undertaken financial transactions, suggesting no operational revenue or expenses.
• Cash and net assets are nominal, showing no financial buffer or working capital.
• Share capital matches the net assets, indicating no retained earnings or reserves.
• Director appointments are in place, but one director recently resigned, which might indicate some governance changes.
• Multiple persons with significant control shows distributed ownership but does not yet translate to operational activity.

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3. Diagnosis

The financial "vital signs" suggest PEMEC REFRIGERATION LIMITED is currently in a state of dormancy with minimal financial activity or operational transactions. The company has not yet begun typical business operations that generate revenue, expenses, or assets beyond the initial share capital.

Symptoms of dormancy include:

• Lack of cash flow activity ("no heartbeat" in financial terms).
• Absence of liabilities or trade creditors, indicating no current business obligations.
• Minimal net assets and shareholder funds, reflecting no accumulated profits or losses.

This condition is typical for a company in its infancy or holding phase, often used to preserve a trading name or prepare for future operational launch.

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4. Recommendations

To transition from dormancy to a financially healthy operational status, the following steps are recommended:

1. Develop a Business Plan and Cash Flow Forecast:
   Initiate planning for operational activities, outlining expected revenues, costs, and investment needs to ensure a "healthy cash flow" once trading begins.

2. Capital Injection or Financing:
   Consider increasing share capital or securing financing to build working capital for initial trading expenses, ensuring the company can meet its short-term obligations.

3. Operational Launch:
   Commence trading activities aligned with the plumbing, heating, and air-conditioning installation industry to generate revenues and establish financial momentum.

4. Regular Financial Monitoring:
   Once operational, track key financial metrics such as liquidity ratios, working capital, and profitability to detect early "symptoms of distress" and address them proactively.

5. Governance Stability:
   Ensure consistent director involvement and clear roles to maintain compliance and strategic oversight.

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