PMDS PROPERTY HOLDINGS LTD

Executive Summary

PMDS Property Holdings Ltd’s financial position is currently weak, with negative net assets and working capital deficits indicating liquidity and solvency risks. The company’s reliance on significant bank loans and absence of turnover raises serious concerns about its ability to service debt and meet commercial obligations. Without demonstrable improvements in cash flow or equity support, credit facilities would carry a high risk.

PMDS PROPERTY HOLDINGS LTD - Analysis Report

Company Number: 12481074

Analysis Date: 2025-07-29 20:58 UTC

1. Credit Opinion: DECLINE
   PMDS Property Holdings Ltd currently exhibits weak financial health, evidenced by negative net assets (£-844) and negative shareholders' funds (£-944) as of the latest accounts. The company has significant long-term liabilities (£40,500) exceeding the value of its fixed assets (£57,793) and has sustained negative working capital (-£18,137), highlighting liquidity constraints. The absence of turnover and income statement details coupled with persistent losses suggests limited cash generation ability, raising concerns about its capacity to meet debt obligations and commercial commitments going forward.

2. Financial Strength:
   The balance sheet shows a stable fixed asset base consisting solely of investment properties valued at £57,793 with no depreciation applied. However, the company’s net liabilities position and negative equity indicate ongoing erosion of capital. Current liabilities (£26,140) and long-term bank loans (£40,500) collectively outweigh current assets (£8,003), resulting in a working capital deficit. This capital structure reflects reliance on external financing and insufficient equity buffer, increasing solvency risk.

3. Cash Flow Assessment:
   Cash holdings improved marginally from £5,854 to £7,003 in the last year, but remain low relative to short-term liabilities. The negative net current assets point to tight liquidity and potential challenges in managing day-to-day operational cash flows. With no reported turnover or profit, internal cash generation appears limited, implying dependence on external funding or shareholder support to service liabilities and maintain operations.

4. Monitoring Points:

• Review upcoming financial filings for any signs of revenue generation or improvement in profitability.
• Monitor changes in working capital and cash reserves to assess liquidity trends.
• Track repayment or restructuring of bank loans to evaluate debt servicing capacity.
• Observe any increase in share capital or equity injections that could strengthen the financial base.
• Follow management actions on cost control and asset utilization to improve business resilience.