Company Number: 13501934

Analysis Date: 2025-07-29 19:53 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   PG Construction Management (Stoodley Knowle) Limited is an active private limited company operating in construction management and related consultancy. The company shows significant current liabilities exceeding current assets, resulting in negative working capital and net liabilities. The company’s accounts are overdue for filing, which raises concerns about compliance discipline. However, it has strong related party support through interest-free loans from its parent company, enhancing liquidity flexibility. Credit approval should be conditional on timely filing of overdue accounts and continued support from related parties to manage cash flow shortfalls.

2. Financial Strength:
   The balance sheet reflects a challenging financial position. As of 31 December 2022, current liabilities (£2.26M) slightly exceed current assets (£2.21M), resulting in negative net current assets of £46,981 (working capital deficit). Net liabilities stand at £12,264, indicating accumulated losses since incorporation in 2021. Tangible fixed assets are minimal (£34,717) and the company relies heavily on debtors (£2.21M) for current assets, with very low cash balances (£426). Shareholders’ funds are negative, reflecting ongoing losses and limited equity buffer. The company is classified as a small entity with 3 employees on average.

3. Cash Flow Assessment:
   Cash holdings are minimal and dropped sharply from £25,611 in 2021 to £426 in 2022, indicating tight liquidity. The debtor balances are substantial, but the risk exists if these are slow to collect or impaired, especially given the high related party debtor portion (£1.67M). The reliance on interest-free loans from the parent company is critical to maintaining operations and meeting short-term liabilities. Current liabilities include significant trade creditors (£1.7M) and deferred income (£485,500), which may pressure cash flow if revenue recognition is delayed. Overall, the company’s liquidity position is weak and dependent on related party funding.

4. Monitoring Points:

• Timely filing of overdue statutory accounts (currently overdue for 2022 accounts) and future compliance with filing deadlines.
• Collection performance on trade and related party debtors to ensure conversion to cash.
• Monitoring working capital trends, especially any increase in liabilities or reduction in debtor quality.
• Continued financial support from parent company or alternative funding sources to cover liquidity gaps.
• Any changes in management or operational performance that could indicate risk to going concern assumptions.