PK PROJECT MANAGEMENT LTD

Executive Summary

PK Project Management Ltd shows a consistent pattern of negative equity and poor liquidity, with current liabilities significantly exceeding current assets. The company’s financial condition and cash flow position do not support additional credit risk. Without substantive improvements in profitability or working capital, extending credit is not recommended. Close monitoring of financial performance and liquidity is essential if the business continues to operate.

PK PROJECT MANAGEMENT LTD - Analysis Report

Company Number: 13544431

Analysis Date: 2025-07-29 18:00 UTC

1. Credit Opinion: DECLINE
   PK Project Management Ltd demonstrates persistent negative net assets and net current liabilities over the last three years, indicating weak financial health and inability to cover short-term obligations. The company’s negative equity has deteriorated from -£5,527 in 2021 to -£11,825 in 2024. The lack of positive working capital and net liabilities suggests poor capacity to service any new credit facilities or repay existing debts reliably. Additionally, the company has a very small asset base (£155 current assets in 2024) and limited operational scale (one employee, director only), which heightens risk exposure. No evidence of profitability or balance sheet improvement is present, and the company is still within its micro entity filing regime with limited transparency on income or cash flows. Given these factors, credit approval is not advisable without significant improvement or external guarantees.

2. Financial Strength:
   The balance sheet is weak and shows ongoing losses or capital erosion. Negative net current assets of approximately -£10,850 and negative shareholders’ funds of -£11,825 reflect liabilities exceeding assets. The company has minimal current assets (£155 in 2024) against current liabilities over £11,000, indicating a poor liquidity position. The negative equity indicates accumulated losses or shareholder withdrawals exceeding invested capital. No fixed assets are reported, and the company relies on short-term liabilities, which is unsustainable. The financial trajectory is negative, with deterioration year-on-year in net assets and working capital.

3. Cash Flow Assessment:
   Cash flow appears constrained. The minimal current assets and significant current liabilities imply insufficient working capital to meet near-term obligations without external funding. The company’s accruals and deferred income (£975) further reduce available liquidity. The small scale (one employee) limits operational cash generation potential. There is no indication of cash reserves or positive operating cash flow from the accounts. Overall, liquidity risk is high, and the company is likely dependent on director funding or external financing to maintain operations.

4. Monitoring Points:

• Quarterly monitoring of liquidity metrics, particularly current ratio and net current assets.
• Watch for any improvements in profitability or cash flow generation in subsequent filings.
• Monitor director funding or related party transactions that may temporarily support liquidity.
• Ensure timely filing of accounts and confirmation statements to maintain transparency.
• Review any changes in management or business strategy that might improve financial stability.