PJC PROJECTS LIMITED

Executive Summary

PJC PROJECTS LIMITED shows a solid micro-entity financial foundation with healthy net assets and positive working capital. The company’s ability to meet short-term liabilities is supported by strong current assets, though the unsecured director loan and dividend payments require monitoring. Approval for credit is recommended with conditions focused on ongoing cash flow and related party transaction oversight.

PJC PROJECTS LIMITED - Analysis Report

Company Number: 15260000

Analysis Date: 2025-07-29 12:48 UTC

1. Credit Opinion: APPROVE with conditions. PJC PROJECTS LIMITED is a newly incorporated micro-entity operating in building completion and finishing. The company demonstrates a strong net asset position and positive working capital, indicating capability to meet short-term obligations. However, given its infancy (incorporated late 2023) and limited trading history, caution is warranted. The unsecured loan to the director and dividend payments suggest cash flow management requires monitoring. Approval is recommended subject to periodic review of updated financials and cash flow status.

2. Financial Strength: The balance sheet as at 30 November 2024 shows total net assets of £173,299 on a micro scale, with fixed assets of £29,389 and a robust net current asset position of £191,347. Current liabilities of £211,814 are adequately covered by current assets of £403,161. The company has minimal share capital (£2) but retains sufficient equity reserves. The presence of creditors due after one year (£19,162) and accruals/deferred income (£28,275) is typical and manageable. Overall, the balance sheet indicates financial stability for a micro-entity.

3. Cash Flow Assessment: Current assets strongly exceed current liabilities, indicating good short-term liquidity. However, the advance of an unsecured, interest-free loan (£53,103 outstanding) to the director reduces available cash resources and introduces repayment risk. The dividend payment of £37,770 further impacts available liquidity. The company’s working capital is sound but ongoing cash flow should be carefully tracked, especially given the director loan and dividend outflows. With only two employees and micro-entity status, cash flow volatility is possible.

4. Monitoring Points:

• Monitor repayment of the director loan to ensure it does not impair liquidity.
• Track dividend payments and ensure they do not exceed distributable reserves or cash availability.
• Review next annual accounts and confirmation statement filings for timely compliance.
• Watch for changes in current liabilities and accruals that could impact working capital.
• Assess revenue growth and profitability trends as the company matures beyond its first financial year.
• Evaluate director conduct and related party transactions for any credit risk concerns.