PP PROPERTY SOLUTIONS LIMITED

Executive Summary

PP Property Solutions Limited is a micro-entity with persistent negative equity and working capital deficits, reflecting weak financial health and limited liquidity. The company’s current financial position and cash flow constraints indicate a high risk of credit default, leading to a recommendation to decline additional credit facilities at this time. Close monitoring of liquidity improvements and capital structure changes is advised before reconsidering credit exposure.

PP PROPERTY SOLUTIONS LIMITED - Analysis Report

Company Number: 13557188

Analysis Date: 2025-07-29 20:02 UTC

1. Credit Opinion: DECLINE
   PP Property Solutions Limited demonstrates ongoing financial distress with persistent net liabilities and negative shareholders' funds since incorporation. The company shows weak liquidity, evidenced by significant net current liabilities (~£59k), and relies heavily on long-term creditors (£106k+). The absence of employees and minimal current assets (£5.4k) further dampens operational resilience. Given these factors, the company currently lacks the financial strength and cash flow stability to service additional credit facilities without substantial risk.

2. Financial Strength:
   The balance sheet reveals fixed assets valued at £162,180, which provide some tangible backing. However, these are overshadowed by large current liabilities (~£106k total creditors, including £64k due within one year), resulting in negative net current assets (working capital deficit of ~£59k). Net liabilities stand at £3,616 in 2024, an improvement from £6,165 in 2023 but still negative, indicating ongoing erosion of equity. The micro-entity status and lack of retained earnings suggest limited capacity to absorb shocks or invest for growth.

3. Cash Flow Assessment:
   Current assets (cash, debtors, stock) are minimal and insufficient to cover short-term obligations, indicating poor liquidity and working capital management. The company likely faces cash flow constraints, with a working capital deficit persisting over multiple years. The absence of reported employees may imply limited operating activity or outsourcing, which could reduce overhead but also restrict revenue generation. Without positive cash inflows or improvement in current asset levels, debt servicing capacity remains weak.

4. Monitoring Points:

• Monitor changes in net current assets and liquidity ratios to detect any improvement in short-term financial health.
• Track profitability and cash flow statements (when available) to assess operational cash generation.
• Review any capital injections or debt restructuring efforts by the sole director/shareholder to shore up equity.
• Observe creditor aging and payment patterns for signs of financial stress or supplier pressure.
• Evaluate any increase in turnover or business activity as a sign of recovery.