PM PROPERTIES AND MAINTENANCE LIMITED

Executive Summary

PM PROPERTIES AND MAINTENANCE LIMITED shows a stable short-term liquidity position with healthy cash reserves but is currently burdened by negative net assets and significant long-term liabilities, reflecting early-stage financial strain. Immediate focus should be on strengthening equity, managing debts, and improving profitability to stabilize and enhance financial health. With proper management, the company can leverage its cash position as a foundation for growth and improved solvency.

PM PROPERTIES AND MAINTENANCE LIMITED - Analysis Report

Company Number: 14525092

Analysis Date: 2025-07-20 14:10 UTC

Financial Health Assessment of PM PROPERTIES AND MAINTENANCE LIMITED (As of 31 December 2023)

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1. Financial Health Score: C-

Explanation:
The company exhibits some foundational strengths such as a healthy cash balance, but its overall net liabilities and negative shareholders’ funds indicate financial strain. The score reflects a borderline condition where immediate attention is needed to prevent worsening health.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Cash at Bank	138,913	Strong liquidity "heartbeat" – the cash flow “pulse” is currently healthy, providing operational flexibility.
Current Liabilities	150,400	Short-term debts slightly exceed cash, indicating a mild “breathlessness” in meeting near-term obligations.
Net Current Assets	138,913	Positive working capital reflects ability to cover immediate liabilities, a sign of short-term stability.
Creditors (Long-Term)	150,400	Significant long-term obligations create pressure akin to “chronic stress” on financial health.
Net Assets (Net Liabilities)	-11,387	Negative net assets are a "symptom of distress," showing the company owes more than it owns overall.
Shareholders' Funds	-11,487	Negative equity signals "capital anemia," which could restrict funding options and growth potential.
Employees	0	No staff costs, suggesting either early stage business or outsourcing model, reducing fixed cost burden.

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3. Diagnosis: Financial Condition Overview

• Liquidity & Short-Term Position: The company currently holds a healthy cash balance (£138,913), which is a positive sign—it acts like a strong “heartbeat” sustaining operations. However, current liabilities (£150,400) slightly exceed cash, indicating that immediate obligations might be tight but still manageable given positive net current assets. This means working capital is sufficient to maintain short-term solvency.

• Solvency & Capital Structure: The presence of long-term creditors (£150,400) without corresponding long-term assets reported suggests a "chronic imbalance" in capital structure. The company is running a net liability position (negative net assets of £11,387), meaning liabilities exceed assets. This condition is analogous to a patient with a weakened immune system—there is vulnerability to financial shocks or downturns.

• Profitability & Growth Capacity: As a newly incorporated company (December 2022), it is in an early stage with no employees and no reported retained earnings (profit and loss account is negative). The absence of an audited profit and loss account limits insight into operational performance, but negative equity and net liabilities indicate initial losses or investment outflows exceeding income.

• Governance & Control: Two directors and shareholders hold significant control (25-50%), indicating concentrated decision-making power which can be beneficial for agility but may limit external oversight.

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4. Prognosis: Future Financial Outlook

Given the current data, the company’s financial health is fragile but not critical. The healthy cash position provides a buffer, but the negative equity and significant long-term liabilities represent ongoing "symptoms" that could worsen without corrective action. As a start-up or early-stage business, it has time to stabilize through improved revenue, expense control, or capital injection.

However, failure to improve profitability or reduce liabilities risks slipping into insolvency or liquidity crises, akin to a patient developing complications from untreated conditions.

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5. Recommendations: Actions to Improve Financial Wellness

• Strengthen Capital Base: Consider equity injections or restructuring of long-term liabilities to reduce net liabilities and improve shareholders’ funds. This is akin to boosting the company’s “immune system” to better fight financial stress.

• Improve Profitability: Focus on generating sustainable revenues and controlling costs. Detailed tracking of income and expenses will help identify "symptoms" of inefficiency or loss-making activities.

• Monitor Cash Flow Closely: Maintain the healthy cash “heartbeat” by managing receivables, payables, and operational expenses tightly to avoid liquidity squeeze.

• Consider Audited Accounts & Detailed Reporting: As the company grows, audited financials will provide more comprehensive insights for stakeholders, akin to undergoing thorough diagnostic tests for better treatment.

• Explore Long-Term Debt Management: Negotiate better terms or refinance existing creditor obligations to ease financial “chronic stress” and improve solvency ratios.

• Plan for Scaling: Hiring or outsourcing strategically can balance operational capacity without overburdening finances.

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