PREMODEM GLOBAL MANAGEMENT LTD

Executive Summary

Premodem Global Management Ltd is currently undercapitalized with negative net assets and a working capital deficit primarily funded by director loans. The company’s liquidity position has deteriorated significantly over the last year, raising concerns about its ability to meet short-term obligations without further financial support. Due to these financial weaknesses and lack of operational cash flow, the credit risk is high and credit facilities should be declined at this stage.

PREMODEM GLOBAL MANAGEMENT LTD - Analysis Report

Company Number: 13886418

Analysis Date: 2025-07-29 19:23 UTC

1. Credit Opinion: DECLINE
   Premodem Global Management Ltd shows persistent negative net assets and shareholders' funds, indicating an ongoing capital deficiency. The company has consistently reported a working capital shortfall, with current liabilities exceeding current assets by £927 at the last year-end. The director’s loan account forms the majority of the liabilities (£7,243 in 2024), suggesting reliance on director financing rather than operational cash flow. The company has no employees and no revenue data presented, indicating minimal operational activity. Given these factors, the company’s ability to service external debt or meet commercial obligations without additional funding support is weak.

2. Financial Strength:
   The balance sheet reveals a small share capital (£12), negligible fixed assets, and minimal current assets primarily held as cash (£6,616). Current liabilities (£7,543) exceed current assets, resulting in negative net current assets (-£927). The net liabilities position (-£927) and negative shareholders’ funds reflect undercapitalization. The company is classified under management and trading of real estate activities, but no tangible asset base or equity cushion supports this. The director’s loan account is a critical liability, which could be repaid or converted if needed, but this is an insider source and not external debt.

3. Cash Flow Assessment:
   The cash balance has materially declined from £76,686 in 2023 to £6,616 in 2024, indicating significant cash outflows or lack of cash inflows during the year. This declining liquidity trend is concerning for short-term financial stability. The company has no employees and likely minimal operational cash generation. With current liabilities exceeding cash and other current assets, liquidity risk is high. The working capital deficit means the company may struggle to meet immediate obligations without additional funding or director support.

4. Monitoring Points:

• Cash reserves and cash flow trends in subsequent periods.
• Changes in director loan account balance and any repayments or conversions.
• Any improvements in net current assets or equity through capital injections.
• Filing of next accounts and confirmation statements to ensure ongoing compliance.
• Business development activities or operational revenue generation to reduce cash burn.