PMV PROPERTIES LTD

Executive Summary

PMV Properties Ltd has a modest asset base dominated by a single investment property but is highly leveraged with significant liabilities and negative working capital. The company shows some improvement in net assets but remains financially fragile with limited liquidity. Conditional credit approval is recommended subject to enhanced security measures and close monitoring of cash flow and debt servicing metrics.

PMV PROPERTIES LTD - Analysis Report

Company Number: 13373526

Analysis Date: 2025-07-20 18:55 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   PMV Properties Ltd is a relatively young company (incorporated 2021) operating in real estate investment and leasing. The company holds investment property valued at approximately £540k, which is its primary asset. However, it carries significant bank loan liabilities of around £360k and current liabilities exceeding £190k, leading to net current liabilities and a very tight equity position (£1,882 net assets). While there is a modest improvement in net assets compared to prior years, the company’s negative working capital and reliance on a single asset class entail some risk. Approval can be considered if supported by additional security or guarantees and close monitoring of cash flows and loan servicing.

2. Financial Strength:
   The balance sheet shows fixed assets in the form of investment property valued at £539,715 with no impairment from prior year carrying value. Current assets are limited to cash balances of £13,439, with current liabilities at £191,307, resulting in net current liabilities of -£177,868. Long-term liabilities consist entirely of bank loans (£359,965). The small positive net asset position (£1,882) reflects a recent move from prior losses to a marginal retained earnings surplus (£1,782). The company’s capital structure is highly leveraged with thin equity, indicating limited buffer to absorb shocks.

3. Cash Flow Assessment:
   Cash holdings have slightly improved to £13,439 from £11,313 the prior year, but remain low relative to current liabilities. The company shows persistent negative net working capital, signaling ongoing liquidity pressure. The absence of employees reduces operational cash demands, but servicing bank loans and creditors will require consistent rental income or capital injections. The financials do not disclose income statement details, but given the property holding and loan profile, cash flows may be cyclical or susceptible to rental market fluctuations.

4. Monitoring Points:

• Liquidity ratios: closely monitor current ratio and quick ratio to detect worsening liquidity.
• Debt servicing: verify timely interest and principal payments on the £360k bank loan.
• Property valuation: ensure investment property valuation remains stable or appreciates; watch for market risks.
• Profitability trends: review future income statements for operational profitability and cash generation.
• Directors’ conduct and related party transactions, given both directors share the same address and involvement.
• Timely filing of accounts and confirmation statements to avoid compliance risks.