PREMIUM SERVICE GLOBAL LIMITED

Executive Summary

Premium Service Global Limited is an active micro-entity operating in IT consultancy and software development, controlled by a single shareholder-director. Despite compliance with filing obligations, the company exhibits high solvency risk due to negative net current assets and liabilities exceeding assets, raising concerns about liquidity and operational stability. Further investigation into cash flows, liability composition, and business viability is recommended before investment consideration.

PREMIUM SERVICE GLOBAL LIMITED - Analysis Report

Company Number: 13731717

Analysis Date: 2025-07-20 16:59 UTC

1. Risk Rating: HIGH
   The company shows persistent negative net current assets and net liabilities over the last two years, indicating solvency concerns. The most recent accounts (2023) reflect net current liabilities of £3,339 and net assets of the same negative amount, showing deteriorating financial position. The small scale and micro-entity status limit financial transparency.

2. Key Concerns:

• Solvency Risk: Negative net current assets and net liabilities in 2023 suggest the company may struggle to meet short-term obligations.
• Liquidity Concerns: Current liabilities exceed current assets by £3,339 in 2023, implying potential cash flow issues.
• Operational Scale and Sustainability: The company remains at micro size with minimal assets (£6,916 current assets) and only 2 employees, limiting operational stability and resilience against market fluctuations.

3. Positive Indicators:

• Compliance with Filing Requirements: Accounts and confirmation statement filings are up to date and not overdue, indicating regulatory compliance and good governance practices.
• Single Controlling Shareholder/Director: Mr. Kenneth Pereira holds 75-100% shares and voting rights, simplifying decision-making and control.
• Industry Focus: Engaged in IT consultancy and software development (SIC codes 62090, 62020, 62012), sectors with growth potential and scalability.

4. Due Diligence Notes:

• Verify the nature of current liabilities and assess whether these include any related party debts or unusual creditor arrangements.
• Investigate cash flow statements (not provided) to determine if operational cash generation is sufficient to cover liabilities.
• Confirm whether there are any contingent liabilities or off-balance-sheet obligations that could exacerbate solvency risk.
• Assess the business model and revenue streams given the small asset base and negative working capital.
• Review director’s track record and any risk related to reliance on a single controlling individual.
• Clarify reasons for the modest asset growth and persistently negative net current assets over three years.