Company Number: 14226803

Analysis Date: 2025-07-20 12:04 UTC

1. Credit Opinion: DECLINE

PR ACCURATE CARE LIMITED, incorporated in 2022 and operating in residential care activities, presents significant credit risk. The company shows escalating net current liabilities and negative shareholders' funds, with net liabilities increasing from £1,718 (July 2023) to £55,231 (March 2024). Current liabilities surged from £18,009 to £62,605 in less than a year, primarily due to director loans (£58,061), indicating reliance on insider funding. Cash balances are low (£4,997) and decreasing. The business is not generating sufficient working capital to cover short-term obligations, which raises concerns about its ability to service external debt or new credit facilities. The directors have not provided audited accounts, and the company recently increased fixed assets with additions of £1,986 but this has not translated into improved financial stability. Given the weak capital structure, negative equity position, and lack of profitability data, extending credit would be hazardous without substantial guarantees or improved financial conditions.

2. Financial Strength:

The balance sheet exhibits poor financial health. Net assets are deeply negative (£-55,231), reflecting accumulated losses or undercapitalization. The company’s fixed assets are modest (£2,377), and current assets are insufficient to cover current liabilities, resulting in a large working capital deficit (£-57,608). The main liabilities are director loans, which may not be readily enforceable or sustainable if the company fails to improve operations. This indicates a fragile equity base and weak solvency. No retained earnings or profit reserves exist; the loss position has worsened significantly within eight months, signaling deteriorating financial position.

3. Cash Flow Assessment:

Cash on hand is minimal and declining (£15,211 to £4,997), while short-term liabilities ballooned, showing liquidity strain. Negative net current assets imply the company does not have enough liquid resources to meet immediate obligations without relying on further director loans or external funding. The presence of accruals and other creditors, albeit small, adds to short-term cash demands. The company’s ability to generate positive operating cash flow is questionable given the negative working capital and lack of profitability disclosures. The average employee count increased to 4, which likely increases cash outflows. Overall, the liquidity position is weak and cash flow is insufficient to support operational and financial commitments.

4. Monitoring Points:

• Track monthly cash balances and cash flow statements to identify liquidity trends.
• Monitor director loans and any external borrowings to assess increasing financial risk.
• Review profitability and operating margins once profit and loss data becomes available.
• Watch for improvements in working capital and net asset position in future filings.
• Ensure timely filing of next accounts and confirmation statements to maintain compliance.
• Evaluate management actions to reduce liabilities or increase equity through capital injections.
• Observe sector-specific risks in residential care, particularly regulatory and funding changes.