PJK CONSTRUCTION LTD

Executive Summary

PJK CONSTRUCTION LTD demonstrates solid financial footing for a micro construction company with growing net assets and positive working capital, supporting its ability to service debt. The company is relatively young but managed conservatively, though liquidity is somewhat constrained and requires ongoing oversight. Conditional approval is recommended with periodic monitoring of cash flow and creditor levels to mitigate risk.

PJK CONSTRUCTION LTD - Analysis Report

Company Number: 13476461

Analysis Date: 2025-07-29 15:05 UTC

1. Credit Opinion: APPROVE with conditions
   PJK CONSTRUCTION LTD shows a positive net asset position and a small but positive working capital in the latest year, indicating the ability to meet short-term obligations. The company is relatively new (incorporated in 2021) but displays growth in net assets from £1,439 in 2021 to £11,450 in 2024, suggesting prudent financial management and capital injection or retained earnings accumulation. However, the micro-entity status and limited scale of operations warrant monitoring liquidity closely. Approval is recommended with regular review of cash flow and creditor dynamics.

2. Financial Strength:
   The balance sheet is healthy for a micro entity with net assets of £11,450 as of June 2024, up from £2,559 the previous year. Fixed assets are modest (£10,812), reflecting likely investment in essential equipment or property for operations. Current liabilities increased to £3,784 from a negative figure previously (possibly reclassified creditors or accruals), but net current assets remain positive at £638. No long-term liabilities or provisions are noted, indicating low gearing risk.

3. Cash Flow Assessment:
   Current assets are primarily £4,422 against current liabilities of £3,784, yielding a positive working capital buffer but significantly reduced from prior years (£2,559 net current assets in 2023). The reduction suggests increased short-term obligations or slower debtor collections. Given the absence of detailed P&L or cash flow statements, liquidity appears adequate but tight. The company should maintain close management of receivables and payables to ensure ongoing cash availability.

4. Monitoring Points:

• Watch trends in current liabilities and working capital to avoid liquidity squeeze.
• Monitor turnover growth and profitability once P&L data is available to assess earnings quality.
• Review director transactions or related party balances that could impact cash flow.
• Confirm no overdue filings or legal issues arise that may affect company status.
• Track any changes in significant control or director conduct that could influence governance.