PINECONE TAYANG DISTRIBUTION LTD

Executive Summary

Pinecone Tayang Distribution Ltd is financially weak with persistent negative net assets and minimal cash resources, indicating poor liquidity and inability to service debt. The company’s small scale, lack of employees, and negligible turnover further undermine its creditworthiness. Without significant improvement or capital support, it is not suitable for credit extension at this time.

PINECONE TAYANG DISTRIBUTION LTD - Analysis Report

Company Number: 13686729

Analysis Date: 2025-07-29 19:21 UTC

1. Credit Opinion: DECLINE. Pinecone Tayang Distribution Ltd exhibits very weak financial fundamentals with persistent net liabilities and negative shareholders’ funds. The company’s balance sheet shows minimal cash resources (£140) against current liabilities (£166), resulting in negative working capital and net assets of -£26 for the last two reported years. There is no turnover growth or operational scale indicated, and no employees are reported, suggesting limited business activity. The company’s financial position is fragile and does not demonstrate the ability to service debt or absorb financial stress. The recent director changes and ownership structure add complexity but do not offset the financial weakness.

2. Financial Strength: The company’s balance sheet is unhealthy. It has consistently reported net current liabilities and net negative equity since incorporation in 2021. The absence of fixed assets or significant current assets beyond nominal cash implies a lack of tangible collateral or financial buffer. Shareholders’ funds are negative (£-26), indicating accumulated losses or insufficient capital injection. The company’s turnover is negligible (£49,452 in 2022) and no profitability data is disclosed, pointing to minimal operational scale and poor financial resilience.

3. Cash Flow Assessment: Liquidity is critically constrained with just £140 cash on hand against current liabilities of £166. This negative net current asset position (-£26) implies the company may struggle to meet short-term obligations without external support. The absence of employees and low turnover also suggest limited internal cash generation capacity. The company’s ability to maintain operations and service any credit facility is questionable, raising concerns about going concern sustainability despite directors’ assertion.

4. Monitoring Points:

• Continued negative net assets and working capital deficits.
• Lack of improvement in cash balances relative to current liabilities.
• Absence of turnover growth or diversification in revenue streams.
• Stability and background of new director(s), given recent changes.
• Any capital injections or restructuring efforts to improve financial position.
• Timely filing of accounts and confirmation statements to monitor compliance and ongoing status.