PETO LIMITED
Company number 07320953 · Monitor this company
This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.
Credit Analysis: PETO LIMITED (07320953)
1. Credit Opinion: DECLINE
Peto Limited is fundamentally insolvent and lacks any independent capacity to service debt obligations. The company carries accumulated losses approaching £4 million, holds merely £6 in cash, possesses no operating assets, and demonstrates no evidence of trading activity. This entity appears to be a dormant shell within a group structure, surviving solely on intercompany support. No commercial credit facility should be extended on a standalone basis.
2. Financial Strength: Critically Weak
Balance Sheet Position (as at 30 June 2024):
| Metric | 2024 | 2023 | Movement |
|---|---|---|---|
| Total Assets | £2,396 | £27,049 | ▼ 91% |
| Net Liabilities | (£41,968) | (£41,965) | ▼ Worsening |
| Shareholders' Deficit | (£3,915,693) | (£3,915,690) | ▼ Worsening |
| Cash | £6 | £10 | ▼ 40% |
Key Observations:
- Deep Insolvency: Shareholders' deficit of £3.92M against called-up share capital of £301K and share premium of £3.57M. The entire capital base has been eroded through accumulated losses.
- No Fixed Assets: All intangible assets (£125K in development costs and patents) are fully amortised. All tangible assets (£1,372 in equipment) are fully depreciated. The company holds zero productive assets.
- Asset Quality Deterioration: Total assets have fallen from £998K (2013) to £2.4K (2024) – a 99.8% decline over the period, reflecting systematic depletion.
- Intercompany Net Creditor: The company owes group undertakings £14,001 (current) with only a net debtor position of £2,390 after netting intercompany amounts. This confirms dependency on the group for working capital.
3. Cash Flow Assessment: Non-Existent
Liquidity Position:
| Metric | 2024 | 2023 |
|---|---|---|
| Current Assets | £2,396 | £27,049 |
| Current Liabilities | £14,001 | £0 |
| Working Capital | (£11,605) | £27,049 |
| Cash | £6 | £10 |
| Long-term Debt | £58,365 | £69,014 |
Critical Findings:
- Near-Zero Cash: £6 cash provides zero buffer for any operational needs or debt service.
- Negative Working Capital: The company cannot meet current obligations from current assets. Current liabilities exceed current assets by nearly 6:1.
- No Revenue Evidence: The income statement has not been filed (small company exemption), but the consistent growth in accumulated losses (£3,678 increase in 2024) indicates ongoing cash burn without offsetting revenue.
- Debt Service Impossibility: With £31,365 in bank loans and £27,000 in other creditors due after one year, there is no conceivable cash generation mechanism to service these obligations independently.
- Group Dependency: The shift from intercompany debtor (£10,954 in 2023) to intercompany creditor (£14,001 in 2024) indicates the company is drawing down on group facilities rather than generating its own liquidity.
4. Monitoring Points
If any group-related exposure exists, the following require ongoing surveillance:
| Risk Area | Metric | Current Status | Concern Level |
|---|---|---|---|
| Going Concern | Net liabilities / Shareholders' deficit | (£41,968) / (£3.92M) | 🔴 Critical |
| Liquidity | Cash position | £6 | 🔴 Critical |
| Asset Depletion | Total assets trend | Declining 99.8% since 2013 | 🔴 Critical |
| Intercompany Dependency | Net position with group | Net creditor £14,001 | 🔴 Critical |
| Operational Status | Website/trading evidence | Domain listed for sale | 🔴 Critical |
| Accumulated Losses | P&L reserve trajectory | Growing annually | 🔴 Critical |
| Group Support | Parent entity: Brunel Marketplace Limited | Unknown financial position | 🟡 Requires Investigation |
Specific Watch Items: 1. No going concern qualification is noted in the filed accounts despite deep insolvency – this raises questions about whether group support letters are in place and whether those assurances are reliable. 2. Website domain appears to be listed for sale (Finnish-language placeholder indicating domain may be for sale), suggesting no active business operations. 3. Long-term creditors of £27,000 remain unchanged year-on-year – investigate nature and terms of this obligation. 4. Bank loan reduction from £42,014 to £31,365 suggests repayments are being made, but source of funds appears to be intercompany rather than operational cash flow.