PJPW LIMITED

Executive Summary

PJPW LIMITED demonstrates poor financial health characterized by negative equity and significant working capital deficiencies, indicating an elevated credit risk. The company’s inability to reduce liabilities or improve liquidity over multiple years suggests operational or financial challenges. Given these factors, credit extension is not recommended without substantial mitigation measures or evidence of turnaround.

PJPW LIMITED - Analysis Report

Company Number: 14300397

Analysis Date: 2025-07-29 15:17 UTC

1. Credit Opinion: DECLINE
   PJPW LIMITED exhibits significant financial weakness, with persistent net liabilities and negative shareholders' funds over multiple reporting periods. The company’s current liabilities exceed current assets by a substantial margin (£151,991 net current liabilities as of 31 March 2025), indicating poor short-term liquidity and working capital deficiencies. The negative net assets position (-£28,040) reflects an erosion of capital, raising concerns on the company’s ability to meet financial obligations without additional capital injection or restructuring. The company’s status is active but it is a recent incorporation (2022), and the fixed assets remain static at £437,147, suggesting no recent investment or asset growth. There is no evidence of profitability or cash flow improvements. Given these factors, the risk of default or financial distress is elevated.

2. Financial Strength:

• Fixed assets: £437,147 (unchanged over 3 years)
• Current assets: £21,684 (declining marginally)
• Current liabilities: £312,806 (unchanged, very high relative to assets)
• Net current assets: -£151,991 (negative working capital)
• Net assets: -£28,040 (negative equity)
• Shareholders funds: Negative, indicating accumulated losses or financing through creditors rather than equity.
  The balance sheet shows a levered position dominated by long-term creditors (£312,806) exceeding total assets less current liabilities. The company’s capital structure is weak, with no equity buffer to absorb losses. The lack of growth in fixed assets and negative net assets suggest either operating losses or financial restructuring needs.

3. Cash Flow Assessment:
   The negative net current assets position and high current liabilities imply tight liquidity and potential cash flow constraints in meeting short-term obligations. Without detailed cash flow statements, the balance sheet suggests limited operational cash generation or delays in receivables collection. The company’s micro-entity reporting status limits disclosure but the consistent negative working capital is a liquidity red flag. The company’s small employee base (3) may reduce overheads, but current liabilities remain disproportionately high.

4. Monitoring Points:

• Liquidity metrics: Monitor current ratio and quick ratio trends to detect worsening liquidity.
• Net assets movement: Watch for improvements or further erosion of shareholder funds.
• Debt servicing capacity: Assess operational cash flows and interest coverage if applicable.
• Director and management actions: Track any capital injections, restructuring plans, or new financing arrangements.
• Filing compliance: Maintain oversight of timely accounts and confirmation statements to avoid regulatory penalties.