PEST CONTROL SYSTEMS LTD

Executive Summary

PEST CONTROL SYSTEMS LTD is a newly established micro-entity in the disinfecting and exterminating services sector with limited financial history and modest net assets. The company exhibits short-term liquidity constraints and a small equity base, recommending cautious credit extension possibly with conditions. Close monitoring of working capital, timely filings, and financial performance is essential before increasing credit exposure.

PEST CONTROL SYSTEMS LTD - Analysis Report

Company Number: 14515612

Analysis Date: 2025-07-19 12:22 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   PEST CONTROL SYSTEMS LTD shows a modest net asset position (£7,745) and limited scale as a micro-entity. The company has been active for only one full financial year since incorporation in late 2022, which restricts historical financial trend analysis. Current liabilities exceed current assets by £14,907 (current assets £37,952 vs current liabilities £52,859), indicating some short-term liquidity pressure, although net current assets are reported as negative £6,045 after prepayments. No audit was required or performed, so financial scrutiny is minimal. The single director and 75-100% owner, Mr Miroslav Gurgul, appears to be in full control with no adverse records noted. Given the company’s young age, small size, and marginal working capital position, credit should be extended cautiously and potentially with conditions such as personal guarantees or limits on exposure until further financial evidence of stability is available.

2. Financial Strength: The company’s balance sheet shows fixed assets of £18,254 and current assets of £37,952, but current liabilities at £52,859. After accounting for provisions (£4,464), net assets stand at £7,745, which is positive but low. The small equity base and negative net current assets suggest limited financial buffer to absorb shocks or downturns. The company employs 3 staff, indicating some operational scale but still small. The absence of significant retained profits or reserves implies limited capacity to self-finance growth or contingencies. Overall, the financial strength is weak but not yet critical.

3. Cash Flow Assessment: The micro-entity accounts do not provide detailed cash flow statements, but the balance sheet indicates working capital constraints with current liabilities exceeding current assets. Prepayments of £8,862 slightly improve the short-term asset picture but do not offset the liability gap fully. The limited net current asset figure (-£6,045) signals potential liquidity risk if the company faces delays in receivables or unexpected expenses. Cash flow management and debtor control will be key to ongoing viability. The operating cycle and cash conversion may be tight given the negative working capital.

4. Monitoring Points:

• Track subsequent annual accounts for improved net assets and working capital position.
• Monitor timely payment behavior and any overdue creditor balances.
• Review any changes in director or ownership structure that could affect governance.
• Assess the impact of business growth or expansion on financial metrics and liquidity.
• Keep watch on provisioning levels and contingency reserves development.
• Ensure compliance with filing deadlines to avoid penalties and assess management capability.