P&L VALENTINE LTD

Executive Summary

P&L VALENTINE LTD exhibits signs of financial stress, highlighted by a steep decline in net assets and negative working capital, which raises concerns about its ability to meet short-term obligations. While the company maintains compliance with filing requirements and has a stable workforce, the limited share capital and deteriorating balance sheet metrics suggest elevated solvency and liquidity risks. Further investigation into cash flows, liabilities, and operational strategy is recommended to evaluate the company’s sustainability.

P&L VALENTINE LTD - Analysis Report

Company Number: 14262024

Analysis Date: 2025-07-29 20:59 UTC

1. Risk Rating: HIGH

Justification: The company’s financial position has markedly deteriorated over the last two years, with net assets falling sharply from £10,663 in 2023 to £1,298 in 2024. Net current assets have turned significantly negative, indicating potential liquidity issues. Given the company’s micro-entity status and limited share capital, the solvency risk is elevated.

2. Key Concerns:

• Declining Net Assets: A nearly 88% reduction in net assets within one year suggests erosion of financial stability.
• Negative Working Capital: Current liabilities exceed current assets by £7,049 in 2024, raising concerns about short-term liquidity and ability to meet obligations.
• Small Share Capital: £6 share capital offers minimal buffer against losses or creditor claims, increasing vulnerability.

3. Positive Indicators:

• Compliance: No overdue filings or confirmation statements; accounts and returns are up to date, indicating regulatory compliance.
• Stable Workforce: Consistent employee count of 2 suggests operational continuity.
• Experienced PSCs: Both controlling persons are medical doctors, likely with relevant industry expertise in general medical practice activities.

4. Due Diligence Notes:

• Investigate causes behind the significant decline in fixed and current assets and corresponding increase in liabilities.
• Review cash flow statements and creditor aging to assess liquidity management and payment timings.
• Confirm if there are contingent liabilities or off-balance sheet obligations not reflected in current accounts.
• Assess the sustainability of the business model given financial trends and small capital base.
• Obtain management commentary on future outlook and any plans to restore financial strength.