PP PROPERTY SERVICES LTD

Executive Summary

PP Property Services Ltd is a small, newly formed micro-entity with negative working capital and minimal financial resources. Due to insufficient liquidity and lack of operational scale, the company presents a high credit risk. Credit facilities are not recommended until the company demonstrates improved financial stability and cash flow generation.

PP PROPERTY SERVICES LTD - Analysis Report

Company Number: 14858400

Analysis Date: 2025-07-29 20:19 UTC

1. Credit Opinion: DECLINE
   PP Property Services Ltd is a newly incorporated micro-entity with limited operating history and minimal financial data. The latest accounts show net current liabilities of £3,882, indicating a working capital deficiency which raises concerns about short-term liquidity and the ability to meet immediate obligations. The absence of employees and a very small asset base further suggest limited operational scale and capacity to generate cash flows. Without evidence of positive cash flow or profitability, the risk of default on any credit facility is elevated. Therefore, extending credit at this stage is not recommended.

2. Financial Strength:
   The balance sheet presents fixed assets of £7,024 against current liabilities of £5,302 and current assets of only £1,420, resulting in a negative net working capital position of £3,882. Net assets stand at £2,342, representing modest shareholder funds. The company’s equity base is very thin, and total assets are minimal, reflecting a very small capital structure typical of a micro company. The lack of retained earnings or reserves means the company has little buffer to absorb financial shocks.

3. Cash Flow Assessment:
   Current assets largely consist of cash or equivalents of £1,420, which is insufficient to cover short-term liabilities. The negative net current assets indicate potential liquidity stress. No employees and no reported profit imply limited operational cash inflows. The company likely relies on director funding or external capital injections to meet cash demands. This weak liquidity profile suggests the company may struggle to fund working capital needs or service debt without external support.

4. Monitoring Points:

• Monitor the company’s next set of accounts for evidence of improved working capital and cash flow generation.
• Track any changes in current liabilities and whether the company is able to reduce short-term creditors.
• Review director’s funding or capital injections which may support liquidity in the short term.
• Watch for any trade references or payment histories that indicate creditworthiness improving or deteriorating.