PRO CONTRACT DIRECT LIMITED

Executive Summary

Pro Contract Direct Limited shows significant financial distress characterized by consistent negative net current assets and minimal cash reserves, raising high solvency and liquidity risks. While statutory compliance is maintained and the company operates in sectors with potential, the absence of employees and ongoing losses suggest operational challenges. Further investigation into trading status, liabilities, and funding plans is essential before considering investment.

PRO CONTRACT DIRECT LIMITED - Analysis Report

Company Number: 13126731

Analysis Date: 2025-07-20 12:49 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits persistent negative net current assets and shareholders’ funds over the last three years, indicating insolvency risk. Cash holdings are negligible (£1), and current liabilities have doubled from £120 to £240 within a year, signaling liquidity stress. Lack of employees and minimal share capital further raise concerns about operational sustainability.

2. Key Concerns:

   • Solvency and Liquidity: Net current liabilities of £239k at the latest year-end and only £1 in cash suggest the company cannot meet short-term obligations without external funding.
   • Operational Viability: No employees recorded, no turnover data available, and consistent negative retained earnings imply the business may not be generating operational income or is in early loss-making stages.
   • Governance and Control: Single director also serving as secretary with 100% ownership concentrates control, potentially reducing oversight and increasing governance risk.

3. Positive Indicators:

   • Compliance: The company is up to date with statutory filings, including accounts and confirmation statements, with no overdue returns noted.
   • Active Website and Contact Info: The company maintains an active website and public contact details, which may support ongoing business activity.
   • Industry Positioning: Operating in temporary employment and management consultancy sectors, which can offer scalable opportunities if operational issues are resolved.

4. Due Diligence Notes:

   • Verify the company’s current trading status and revenue streams given the absence of employees and financial performance details.
   • Investigate the nature and maturity of current liabilities to assess immediate payment obligations and creditor relationships.
   • Assess director’s plans for capital injection or restructuring to restore solvency and improve working capital.
   • Review any inter-company transactions or related party debts that might affect financial stability.
   • Confirm whether the company is reliant on external funding or guarantees to continue trading.