PERFORMANCE & PRESTIGE VEHICLE SOLUTIONS LIMITED

Executive Summary

Performance & Prestige Vehicle Solutions Limited is a young private limited company operating in the sale of motor vehicles with early-stage financial weakness evidenced by negative net assets and working capital. While compliance and director stability are positive, liquidity pressures and reliance on finance leases warrant conditional credit approval. Close monitoring of updated financial performance and cash flow management is essential to support credit decisions going forward.

PERFORMANCE & PRESTIGE VEHICLE SOLUTIONS LIMITED - Analysis Report

Company Number: 12690365

Analysis Date: 2025-07-20 15:47 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Performance & Prestige Vehicle Solutions Limited is a recently incorporated SME engaged in motor vehicle sales. The company’s latest filed accounts (year ended 30 June 2021) reveal a modest asset base but a net liability position (£-3,080), indicating initial losses or capital erosion. The negative net current assets (£-14,490) and reliance on finance leases and hire purchase contracts for funding suggest tight liquidity and working capital constraints. However, the company is active, compliant with filings, and controlled by experienced directors with significant ownership stakes. Conditional approval is recommended subject to updated financials showing improved profitability and liquidity, plus monitoring of debt servicing ability as the company scales.

2. Financial Strength:
   The balance sheet as of June 2021 shows total fixed assets of £28,362, primarily motor vehicles and office equipment, supporting operational capacity. Current assets amount to £67,505, composed mostly of cash (£32,014) and stock (£34,617), offset by high current liabilities (£81,995), resulting in negative working capital. Long-term liabilities (finance leases) are £16,952. Net assets are negative (£-3,080), reflecting early stage losses or investment phases typical for a young business. The small share capital (£100) provides minimal equity buffer. Overall financial strength is weak but not unusual for a startup; the company requires close liquidity management and growth in retained earnings to build resilience.

3. Cash Flow Assessment:
   Cash on hand (£32,014) provides some liquidity cushion, but current liabilities exceed current assets, implying potential short-term cash flow pressure. The significant finance lease obligations indicate fixed repayment commitments that will strain cash flow if sales and margins do not improve. Debtors are minimal (£874), reducing concerns over collections risk but pointing to limited credit sales. Working capital is negative, so the company must manage inventory turnover efficiently and secure timely supplier payments. Without updated cash flow statements, the current data suggests tight cash flow conditions with risk if sales growth slows or unexpected expenses arise.

4. Monitoring Points:

• Updated financial statements (post June 2021) to assess profitability trends and net asset recovery.
• Liquidity ratios (current ratio, quick ratio) to confirm working capital improvements.
• Debt servicing capacity, particularly meeting finance lease repayments on time.
• Inventory turnover and debtor days to ensure efficient working capital management.
• Directors’ conduct and stability, given the recent resignation of one director and current ownership concentration.
• Any changes in business model or market conditions impacting sales and margins in the used vehicle sector.