PMC (SW) LTD

Executive Summary

PMC (SW) Ltd is a newly established building development company showing a stable financial position with strong cash reserves and positive working capital. While the company has no profit or turnover reported yet, its financial foundation is sound for the early stage of business. Continued focus on cash flow management and operational performance tracking is recommended to sustain and enhance financial health as the company grows.

PMC (SW) LTD - Analysis Report

Company Number: 15236201

Analysis Date: 2025-07-20 15:17 UTC

Financial Health Assessment of PMC (SW) Ltd

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1. Financial Health Score: B

Explanation:
PMC (SW) Ltd, a recently incorporated private limited company in the building development sector, demonstrates a generally healthy financial position for its first year. It has positive net current assets and net assets, indicating a stable foundation. However, the low fixed asset base and relatively high current liabilities suggest some early-stage liquidity pressures and reliance on short-term financing. The limited trading history and absence of turnover or profit data prevent a higher rating. Overall, the company is on a sound footing but requires close monitoring as it scales.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	2,231	Very modest investment in long-term assets; typical for a new company.
Current Assets	174,246	Healthy level of short-term assets, especially strong cash balance (£144k).
Cash at Bank and in Hand	144,218	Excellent "healthy cash flow" symptom indicating good liquidity.
Debtors	15,327	Moderate amount tied up in receivables; manageable given business size.
Stocks (Work in Progress)	14,701	Reflects ongoing projects; typical for development activities.
Current Liabilities	135,009	Relatively high short-term obligations; warrants monitoring for liquidity management.
Net Current Assets (Working Capital)	39,237	Positive working capital suggests the company can cover short-term debts.
Net Assets / Shareholders’ Funds	41,468	Positive equity base indicating solvency and funding capacity.
Share Capital	2	Nominal capital reflecting typical structure for start-ups.

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3. Diagnosis

PMC (SW) Ltd exhibits several "healthy cash flow" signs: a strong cash position and positive net current assets indicate the company can meet its immediate financial obligations. The company is in its infancy (incorporated late 2023), so the financial statements cover just over one year of activity.

The presence of work in progress and debtors aligns with its SIC code 41100 (Development of building projects), reflecting ongoing contract activities. The company has not yet reported turnover or profit figures, which is not unusual for a start-up still building its operations.

The relatively high current liabilities reflect trade creditors, tax liabilities, and other short-term debts, which is a symptom to watch but currently well-covered by liquid assets. The low fixed asset base is expected given the nature of the business, relying more on project development than heavy equipment.

The directors, both experienced professionals in construction and surveying, hold equal control and have a direct operational focus, which is positive for governance and strategic alignment.

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4. Recommendations

• Cash Flow Monitoring: Continue to maintain and monitor cash reserves to ensure liquidity remains strong as project work scales and liabilities potentially increase.
• Turnover and Profit Tracking: Begin reporting turnover and profit metrics in future accounts to provide a clearer picture of operational performance and profitability.
• Management of Current Liabilities: Manage creditor terms carefully to avoid liquidity crunches, especially as projects expand and payment cycles lengthen.
• Investment in Fixed Assets: Evaluate the need for additional capital expenditure to support business growth, balancing asset acquisition with cash flow.
• Financial Planning: Implement robust financial forecasting and budgeting to anticipate working capital needs and investment opportunities.
• Compliance: Ensure timely filing of accounts and confirmation statements to maintain good standing and avoid penalties.

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