PH REFURBISHMENTS LIMITED

Executive Summary

PH Refurbishments Limited, a recently incorporated building completion business, shows moderate financial stability with positive equity growth but notable liquidity challenges due to persistent negative working capital and increased short-term liabilities. The company maintains compliance with filing obligations and has invested significantly in fixed assets, though reliance on director advances warrants further scrutiny. Overall, while operational continuity is plausible, cash flow management and liability structure require close monitoring to mitigate solvency risk.

PH REFURBISHMENTS LIMITED - Analysis Report

Company Number: 14150022

Analysis Date: 2025-07-29 14:46 UTC

1. Risk Rating: MEDIUM
   PH Refurbishments Limited demonstrates a modest equity base but persistent net current liabilities and increasing short-term obligations. The company is relatively new (incorporated 2022), and while not overdue on filings, its liquidity position and reliance on director advances present moderate solvency and cash flow concerns.

2. Key Concerns:

• Negative net current assets for two consecutive years (£-13,750 in 2024) indicate potential liquidity strain and difficulty meeting short-term obligations.
• Increase in current liabilities from £6,457 (2023) to £28,198 (2024) alongside rising fixed assets suggests possible overextension or capital expenditure not yet translating to cash inflows.
• Director’s loan balance included in creditors (£3,614 in 2024) points to reliance on internal financing which may affect governance and operational independence.

3. Positive Indicators:

• The company remains compliant with statutory filing deadlines with no overdue accounts or confirmation statements, reflecting sound regulatory adherence.
• Net assets and shareholders’ funds have increased slightly from £8,258 (2023) to £8,763 (2024), showing some retained earnings growth despite the liquidity challenges.
• Tangible fixed assets have increased substantially, potentially indicating investment in business capacity and operational infrastructure.

4. Due Diligence Notes:

• Investigate the nature and terms of the increased current liabilities and director loans to understand repayment schedules and contingent risks.
• Review cash flow forecasts and working capital management plans to assess how the company intends to resolve negative net current assets.
• Clarify revenue generation and profitability trends, as abridged accounts omit full profit and loss data; understanding operational sustainability is critical given the company’s short operating history.