PMD PROPERTY SERVICES LIMITED

Executive Summary

PMD Property Services Limited operates in real estate with a strong fixed asset base and recent profitability improvement. However, the company carries high leverage and shows liquidity constraints with current liabilities far exceeding current assets. While regulatory compliance is satisfactory, the financial structure poses moderate risk requiring further review of debt terms and cash flow sustainability.

PMD PROPERTY SERVICES LIMITED - Analysis Report

Company Number: 14040864

Analysis Date: 2025-07-29 14:43 UTC

1. Risk Rating: MEDIUM
   The company shows a positive profit for the latest year and net positive shareholders’ funds, indicating some financial recovery. However, its high level of long-term debt relative to equity and limited liquidity raise concerns over its ability to meet obligations comfortably.

2. Key Concerns:

• High Leverage: The company has substantial long-term liabilities (£506,410) nearly 134 times its shareholders’ funds (£3,784), indicating significant financial risk and dependency on debt servicing.
• Liquidity Constraints: Current liabilities (£272,394) far exceed current assets (mainly cash at £13,301), resulting in a negative net current asset position (-£259,093), which may cause cash flow stress in meeting short-term obligations.
• Limited Operating Scale and Resources: The company has no employees and minimal administrative expenses, suggesting a very lean operational setup that may limit growth or resilience to market fluctuations.

3. Positive Indicators:

• Profitability Improvement: The company recorded a profit of £9,709 in 2023 compared to a loss in the prior year, showing operational improvement.
• Asset Base: Tangible fixed assets (property) valued at £769,287 provide a solid asset backing.
• Good Compliance Record: No overdue filings or accounts; all statutory returns appear filed timely, indicating sound regulatory compliance and governance.

4. Due Diligence Notes:

• Verify the terms, interest rates, and covenants attached to the substantial mortgage liabilities to assess refinancing risk and debt servicing capacity.
• Review cash flow forecasts and working capital management given the negative net current assets and low cash balances.
• Confirm valuation and marketability of the fixed assets to understand collateral value and potential liquidity in distress scenarios.
• Examine directors’ plans for improving operational scale or capital structure to mitigate leverage and liquidity risks.