Company Number: 12738795

Analysis Date: 2025-07-29 20:34 UTC

1. Credit Opinion: DECLINE
   Property Master Academy Ltd demonstrates persistent and significant negative equity, with net assets deteriorating from -£23,488 in 2023 to -£27,804 in 2024. The company’s liabilities substantially exceed its assets, mainly due to large director’s current account balances (£23,298 in 2024). This indicates that the company is reliant on director funding to meet obligations, which is a credit risk. There is no evidence of profitability or sufficient cash flows to service external debt or absorb further losses. Without a clear turnaround or external capital injection, the company’s ability to repay new or existing credit is questionable.

2. Financial Strength:
   The balance sheet shows minimal fixed assets (£819) and very low cash balances (£338 in 2024, down sharply from £3,768 in 2023). Current liabilities are high and stable around £28k, dominated by director’s current accounts which represent funds owed to the directors rather than third-party creditors. Retained losses have accumulated to nearly -£28k, far exceeding the nominal share capital (£3). This weak equity position and lack of tangible net worth undermine financial resilience.

3. Cash Flow Assessment:
   The company’s liquidity position is poor. Cash on hand has fallen significantly year-on-year, while current liabilities remain high and largely unchanged. Negative net current assets (-£28,623) suggest ongoing working capital deficits. The reliance on director funding rather than operating cash flow to meet liabilities is concerning. The company’s small operating scale (2 employees) and lack of growth in fixed assets or cash suggest limited cash generation capacity. There is no available income statement, but reported losses indicate cash flow deficits.

4. Monitoring Points:

• Monitor director’s current account balances and any changes in director funding commitments.
• Watch cash balances and liquidity trends quarterly to detect worsening shortfalls.
• Track any capital injections or restructuring that could restore equity.
• Assess operating profitability and revenue growth when income data becomes available.
• Monitor any overdue filings or changes in director appointments as signals of governance or operational stress.