PMW INTERNATIONAL LTD

Executive Summary

PMW INTERNATIONAL LTD demonstrates a severely negative net asset position and negative working capital, indicating an inability to meet short-term obligations. The company’s financial profile is weak with no substantive cash or equity buffers, leading to a high credit risk. Credit extension is not recommended without substantial improvement in liquidity and capitalization.

PMW INTERNATIONAL LTD - Analysis Report

Company Number: 13154296

Analysis Date: 2025-07-29 21:01 UTC

1. Credit Opinion: DECLINE
   PMW INTERNATIONAL LTD shows a persistent and significant negative net asset position (£-15,802 as of January 2025) driven by current liabilities far exceeding current assets. This indicates poor financial health and an inability to meet short-term obligations. The company’s working capital is deeply negative, raising concerns about liquidity and repayment capacity. Without evidence of improving cash flows, profitability, or external funding, the risk of default on any credit extended is high.

2. Financial Strength:
   The balance sheet reveals chronic undercapitalisation and a worsening deficit in net current assets over the last three years. Shareholders’ funds are negative and deteriorating (from -£14,887 in 2024 to -£15,802 in 2025). Current liabilities (~£15,800) overshadow minimal current assets (£3), indicating severe liquidity constraints. The company maintains no fixed assets and has no recorded share capital beyond £1, suggesting limited equity buffer.

3. Cash Flow Assessment:
   The company’s liquidity position is critically weak with negligible cash or equivalents and no working capital cushion. The absence of employees (0 average) and minimal current assets imply limited operational activity or revenue generation. This lack of liquidity severely limits the firm’s ability to service debt or meet other liabilities as they fall due. No signs of operational cash flow or external funding are apparent to mitigate this.

4. Monitoring Points:

• Monitor quarterly cash flow statements and short-term liquidity ratios.
• Watch for any capital injections or shareholder funding to offset negative equity.
• Review any change in trade creditors or the ability to extend payment terms.
• Track business activity and revenue generation to assess improvement in operational cash flow.
• Confirm director actions or restructuring plans that may address financial distress.