PML ACCOUNTING LIMITED

Risk Rating: HIGH Justification: The company is currently in liquidation, rendering any investment or credit exposure fundamentally speculative. Furthermore, the company exhibits profound financial instability, characterized by significant accumulated losses, negative working capital, and an apparent reliance on substantial goodwill revaluations to maintain a positive net asset position.

Key Concerns: * Corporate Status: The company's status is listed as "Liquidation," indicating it is undergoing a formal closure process and is no longer a going concern. Both annual accounts and confirmation statements are overdue, which is typical for entities entering terminal administrative phases but compounds the lack of transparency. * Severe Insolvency Masked by Accounting Policy: Shareholders' funds show a massive deficit of £-455,224 as of March 2021, deteriorating significantly from a positive position in prior years. The reported positive net assets of £25,766 are entirely dependent on a £450,000 revaluation reserve. This reserve stems from goodwill revaluations (increasing from £0 to £450,000 between 2018 and 2021), which artificially inflates the balance sheet to offset the deep operational losses. * Critical Liquidity Deficit: As of March 2021, the company reported net current liabilities of £90,648. Current assets consisted solely of £19,018 in debtors, against current liabilities of £109,666. The absence of any reported cash reserves indicates an absolute inability to meet short-term obligations without external intervention, which likely precipitated the liquidation.

Positive Indicators: * Historical Operational Tenure: The company successfully traded for over a decade following its incorporation in 2007, and as recently as 2019, it reported positive shareholders' funds of £200,000 and a net current asset position. * Tangible Asset Base: The company holds £37,793 in tangible fixed assets (likely motor vehicles, furniture, and equipment based on depreciation policies), which may hold some realizable value for creditors during the liquidation process.

Due Diligence Notes: * Liquidation Details: It is imperative to identify the date of the liquidation appointment, the type of liquidation (Compulsory vs. Creditors' Voluntary), and the appointed insolvency practitioner to understand the legal hierarchy of creditor claims. * Goodwill Revaluations: Investigate the origins and justification of the £450,000 goodwill revaluation. Goodwill for an accounting firm is highly susceptible to impairment, especially upon the loss of key personnel or client relationships. This valuation requires intense scrutiny as it holds no realizable value in a liquidation scenario. * Creditor Composition: Determine the nature of the £363,400 in long-term creditors and the £90,648 in current liabilities. Given the three PSCs (Paul, John, and Mark Hazell), it is highly probable that a significant portion of this debt is director-related or inter-company loans, which will be subordinated in the liquidation waterfall.