PIABODE PROPERTIES LIMITED

Executive Summary

Piabode Properties Limited is a newly formed micro-entity with a weak financial position characterized by negative working capital and minimal net assets. The company currently lacks sufficient liquidity and operating history to support credit facilities. Given these factors, credit approval is declined with recommendation for close monitoring of liquidity and capital structure in future periods.

PIABODE PROPERTIES LIMITED - Analysis Report

Company Number: 14627968

Analysis Date: 2025-07-29 19:33 UTC

1. Credit Opinion: DECLINE
   Piabode Properties Limited is a newly incorporated micro-entity (since January 2023) engaged in buying and selling own real estate. The financial data for the first reporting period ending March 2024 shows a very weak balance sheet with net current liabilities of £124,757 and minimal net assets of £1,418. The company has no employees and minimal current assets (£7,560) against creditors due within one year of £132,317, indicating liquidity stress. Given the negative working capital and lack of operating history or profitability data, the company is currently unable to demonstrate the capacity to service any debt or credit facilities reliably. The absence of an audit and limited financial disclosures further increase the risk profile. Therefore, credit approval is not recommended at this stage.

2. Financial Strength:
   The balance sheet shows fixed assets valued at £126,175, presumably investment properties or related assets, but current liabilities significantly exceed current assets, resulting in a net current liability position of £124,757. Shareholders' funds are nominal (£1,418), reflecting initial capital contributions but no accumulated earnings or reserves. The company's micro-entity status limits the extent of financial detail available, but the reported figures clearly show a fragile financial position with no buffer to absorb operational or market shocks. Overall, the financial strength is poor.

3. Cash Flow Assessment:
   With current assets of only £7,560 and current liabilities over £132,000, the company faces immediate liquidity challenges. No cash flow statement or profit and loss data is provided, but the negative net current assets imply that the company may struggle to meet short-term obligations without additional capital injections or refinancing. The absence of employees suggests minimal operational overheads, but also limited income-generating capacity. Working capital management is critical, but current data points to an inadequate liquidity position.

4. Monitoring Points:

• Track improvements in net current assets and overall liquidity, especially reductions in short-term creditors.
• Monitor any capital injections or shareholder loans to support working capital.
• Review subsequent filings for profit generation or cash flow improvements.
• Observe the directors' strategy for asset utilization or disposal to improve financial stability.
• Watch for any overdue filings or changes in company status that might indicate distress.