PRO-KUT (LONDON) LTD

Executive Summary

PRO-KUT (LONDON) LTD exhibits deteriorating financial health with net current liabilities and negative net assets as of the latest accounts, indicating poor liquidity and financial resilience. Given the limited asset base and working capital shortfall, the company is currently high risk for credit extension. Close monitoring of cash flows and creditor management is essential if credit is considered in the future.

PRO-KUT (LONDON) LTD - Analysis Report

Company Number: 13789364

Analysis Date: 2025-07-20 17:45 UTC

1. Credit Opinion: DECLINE
   PRO-KUT (LONDON) LTD shows a significant deterioration in financial health over the latest year, moving from positive net current assets of £2,378 in 2022 to negative net current assets of -£1,328 in 2023. This indicates increased short-term liabilities exceeding current assets, raising concerns about liquidity and the company’s ability to meet its immediate obligations. As a micro-entity operating in the hairdressing sector with very limited asset base and only one employee, the financial position is weak and poses a high credit risk. Without clear evidence of improved cash flow or financial support, extending credit would be imprudent.

2. Financial Strength:
   The balance sheet reflects a decline in net assets from £2,378 in 2022 to a negative £1,328 in 2023, implying erosion of shareholder funds. Current liabilities increased sharply from £394 to £6,936 while current assets only modestly increased from £2,772 to £5,608. The absence of fixed assets or other long-term investments limits collateral value. Overall, the company’s financial strength is fragile with a net liability position affecting solvency.

3. Cash Flow Assessment:
   The worsening net current asset position indicates working capital deficiency. The company may be struggling to convert assets into cash or control creditor payments. With one employee and small asset base, operating cash flow is likely tight. This raises concerns about the ability to service debt or absorb financial stresses without additional capital injections or improved revenue generation.

4. Monitoring Points:

• Track quarterly cash flow and creditor payment patterns.
• Monitor changes in current liabilities and short-term borrowings.
• Review director and shareholder capital contributions or loan arrangements.
• Watch for delayed filings or any signs of operational distress such as director resignations or restructuring.
• Assess any improvement in net assets or liquidity ratios in subsequent accounts.