PF LEWIS LIMITED

Executive Summary

PF Lewis Limited is a very young micro-entity showing initial signs of financial recovery with a marginally positive net working capital and shareholders’ funds. However, its extremely limited equity base, low absolute cash levels, and minimal operational scale present medium solvency and liquidity risks typical of an early-stage company. Further insight into profitability, cash flow, and business model sustainability is essential before concluding on long-term stability.

PF LEWIS LIMITED - Analysis Report

Company Number: 14120080

Analysis Date: 2025-07-29 14:15 UTC

1. Risk Rating: MEDIUM
   PF Lewis Limited exhibits some early signs of financial stabilization but remains exposed to risks typical of a young, micro-sized company with limited capital and working capital. The company has improved its net current assets position from negative to marginally positive, indicating some progress in meeting short-term obligations. However, the low absolute level of cash and equity, coupled with modest liabilities, means solvency and liquidity remain sensitive to operational performance and cash flow timing.

2. Key Concerns:

• Low Net Current Assets & Marginal Liquidity Cushion: The company’s net current assets improved from a deficit of £3,117 to a slim positive £147, but this is still minimal relative to liabilities (£7,079). Cash at bank (£7,226) barely covers current liabilities, leaving little room for unexpected cash flow pressures.
• Small Equity Base and Historical Losses: Shareholders' funds increased from a negative £3,217 to a positive £147, reflecting limited retained earnings (£47). This thin equity base may constrain ability to absorb losses or secure financing.
• Limited Operating History and Scale: Incorporated in May 2022 with just one employee (the director), the company’s small scale and absence of detailed turnover or profit data limits assessment of operational sustainability.

3. Positive Indicators:

• Recent Improvement in Financial Position: The reversal from negative to positive net current assets and equity suggests management has begun addressing financial weaknesses.
• No Overdue Filings: Accounts and confirmation statements are up to date with no overdue filings, indicating good compliance and governance practices.
• Single Director and Shareholder Control: Full ownership and control by Prince Felix Lewis may enable agile decision-making and strategic consistency.

4. Due Diligence Notes:

• Review Detailed Profit & Loss Information: The absence of income statement data restricts assessment of revenue generation, profitability, and cash flow trends. Request unaudited management accounts or further disclosures.
• Examine Cash Flow Statements: To understand liquidity dynamics and timing risk, cash flow data over the last 12-24 months is necessary.
• Assess Client Base and Revenue Visibility: Investigate the nature of the "Other service activities" (SIC 96090) and whether recurring contracts or client diversification support operational stability.
• Director’s Financial Standing and External Support: Given sole control, evaluate whether the director provides financial backing or plans for capital infusion to support growth or cover liabilities.