PRIME MED TOURS LTD

Executive Summary

Prime Med Tours Ltd is in a precarious financial state marked by deepening net liabilities and negative working capital, which significantly impairs its ability to service debt or meet short-term obligations. The business is still in its infancy with limited financial resilience and no evidence of profitability or capital strengthening. Consequently, credit facilities cannot be safely extended without substantial mitigating factors or guarantees.

PRIME MED TOURS LTD - Analysis Report

Company Number: 14357944

Analysis Date: 2025-07-29 17:10 UTC

1. Credit Opinion: DECLINE
   Prime Med Tours Ltd exhibits significant financial distress with persistent net liabilities and a worsening working capital position. The company’s net current liabilities have increased from £2,402 (2023) to £19,422 (2024), indicating severe liquidity constraints. Additionally, shareholders' funds are deeply negative (£19,522 at 2024 year end), reflecting accumulated losses and eroded equity, which undermines financial stability and creditworthiness. Given the early stage of the company (incorporated 2022) and lack of positive earnings or capital injection, the risk of default on credit facilities is high.

2. Financial Strength:
   The balance sheet reveals a fragile financial position. Current assets (£10,888) are substantially outweighed by current liabilities (£30,310) at the 2024 year end, leading to a negative working capital of £19,422. The company holds no significant fixed assets or tangible collateral; cash balances are low (£11,015) and debtors are negative due to adjustments or doubtful receivables. The negative net assets and shareholders’ funds indicate ongoing losses and insufficient capital buffer. This weak equity base limits the company’s ability to absorb financial shocks.

3. Cash Flow Assessment:
   Cash balances increased modestly from £7,961 to £11,015 year-on-year but remain insufficient to cover current liabilities, which nearly tripled. The sharp rise in creditors—particularly other creditors—from £10,363 to £29,309 suggests reliance on trade credit and possible payment delays to suppliers or tax authorities. Negative debtors imply poor collection or adjustments impacting cash inflows. The company’s operations do not generate positive working capital, raising concerns about liquidity and its ability to meet short-term obligations without additional financing support.

4. Monitoring Points:

• Monitor monthly cash flow closely to detect liquidity pressures.
• Watch creditor aging and any increase in overdue payables, especially taxes or statutory dues.
• Review any capital injections or restructuring plans to improve equity and solvency.
• Track turnover and profitability trends to assess if the business model is gaining traction or deteriorating.
• Keep an eye on director conduct and changes in ownership/control that may affect strategic direction.