PK RETAILS TECH GADGET LTD

Executive Summary

PK RETAILS TECH GADGET LTD shows deteriorating financial health with increasing negative equity and poor liquidity, raising serious concerns about its ability to meet credit obligations. The company’s micro-entity scale and lack of profitability present high credit risk, warranting a decline or, at best, conditional credit approval with stringent monitoring. Close attention should be paid to any financial or operational improvements in future periods before reconsidering credit facilities.

PK RETAILS TECH GADGET LTD - Analysis Report

Company Number: 13061808

Analysis Date: 2025-07-20 11:55 UTC

1. Credit Opinion: DECLINE
   PK RETAILS TECH GADGET LTD presents a high credit risk. The company has sustained increasing net liabilities over the last three financial years, with net assets deteriorating from a positive £896 in 2020 to a negative £4,072 in 2023. Negative working capital and persistent net current liabilities indicate insufficient short-term liquidity to meet obligations. The absence of employees and minimal fixed assets suggest limited operational scale and capacity. Without evidence of profitability or cash flow improvements, the company’s ability to service debt or fulfill commercial commitments is doubtful.

2. Financial Strength:
   The balance sheet shows weakening financial strength. Fixed assets are minimal (£474 in 2023) and declining, while current liabilities have surged to £4,868, causing net current liabilities of £4,396. The company’s total net liabilities reflect accumulated losses and negative equity, indicating erosion of shareholder funds. The lack of retained earnings and sustained losses imply poor financial stewardship or challenging market conditions. As a micro-entity with minimal capital (£1 share capital), it lacks a buffer against financial stress.

3. Cash Flow Assessment:
   Working capital is significantly negative, demonstrating strained liquidity. Current assets (£472) fall far short of current liabilities (£4,868), highlighting inability to cover short-term debts from available liquid resources. No data on cash flows is provided, but the financial position suggests operating cash flows are insufficient or negative. The company’s reliance on external financing or shareholder support is likely, which may not be sustainable. The exit of previous directors and turnover in management could further affect cash management.

4. Monitoring Points:

• Track quarterly or interim financial updates for improvements in liquidity and net assets.
• Monitor any changes in directors or significant control that could affect governance or funding.
• Assess any new filings or disclosures indicating business strategy changes or capital injections.
• Watch for overdue filings or signs of insolvency proceedings.
• Review trade payment behavior and credit references if available to gauge short-term payment reliability.