Company Number: 13816725

Analysis Date: 2025-07-29 15:17 UTC

1. Credit Opinion: APPROVE with caution
   PQQ LTD is a very small, micro-entity private limited company operating in management consultancy. The company shows positive net assets and working capital with consistent shareholder funds over the last three years. Despite the small scale and low absolute financial values, the absence of overdue filings, and no indication of financial distress or negative equity supports credit approval for modest credit facilities. However, the company’s limited size and zero employees suggest limited operational scale and potential vulnerability to business disruptions, so credit lines should be tailored to the company’s modest financial profile.

2. Financial Strength:

• Net assets decreased slightly from £5,374 in 2023 to £4,768 in 2024, indicating a small reduction in equity but maintaining positive net worth.
• Net current assets remain positive at £5,008, showing a healthy short-term liquidity buffer with current assets (£7,038) exceeding current liabilities (£2,030).
• The company holds no fixed assets and minimal provisions or accruals, reflecting a simple balance sheet structure typical of micro entities.
• Shareholder funds remain stable, suggesting retained earnings or capital contributions offset any minor losses.

3. Cash Flow Assessment:

• The increase in current liabilities from £1,027 to £2,030 is notable but still well covered by current assets.
• No employees are employed, so payroll cash outflows are negligible, reducing fixed operational costs.
• The company’s cash or equivalents appear adequate for day-to-day operations, but the absence of detailed cash flow statements limits deeper analysis.
• Given the micro scale and low liabilities, working capital management appears sufficient to meet short-term obligations.

4. Monitoring Points:

• Track any significant changes in current liabilities, especially if they rise disproportionately to current assets, which could indicate liquidity stress.
• Monitor net asset trends to ensure the company does not erode equity below safe levels.
• Review any changes in business scale, such as hiring employees or increasing operational expenses, which could impact cash flow demands.
• Watch for timely submission of annual accounts and confirmation statements to avoid compliance risks.
• Keep an eye on director conduct and related-party transactions given sole control by a single director/shareholder.