PROVIDENCE GATE GROUP HOLDINGS LIMITED

Executive Summary

Providence Gate Group Holdings Limited shows clear signs of financial distress with negative net assets and working capital deficits, raising substantial solvency and liquidity concerns. While regulatory compliance is maintained, the company’s heavy reliance on amounts owed by associates and limited cash reserves warrant close scrutiny. Further investigation into operational viability and debtor recoverability is essential before considering investment.

PROVIDENCE GATE GROUP HOLDINGS LIMITED - Analysis Report

Company Number: 12973727

Analysis Date: 2025-07-20 11:24 UTC

1. Risk Rating: HIGH
   Providence Gate Group Holdings Limited exhibits significant financial distress, with persistent net liabilities, negative net current assets, and minimal cash reserves. The lack of profitability data and reliance on amounts owed by associates raise concerns about its ability to meet short-term obligations.

2. Key Concerns:

• Negative Net Assets: The company shows net liabilities of approximately £46,766 consistently over recent years, indicating an erosion of shareholder equity and potential insolvency risks.
• Liquidity Constraints: Current liabilities (£697,473) exceed current assets (£651,939), resulting in negative working capital of £45,534 and very low cash on hand (£2,850), signaling potential cash flow difficulties.
• Dependence on Related Parties: A large portion of current assets (£649,089) are debtors owed by associates, which may not be readily collectible or sustainable as a funding source.

3. Positive Indicators:

• Compliance with Filing Requirements: The company’s accounts and confirmation statements are up to date with no overdue filings, reflecting regulatory compliance.
• Active Website and Contact Details: The presence of an active website and contact information suggests ongoing business operations and an attempt at transparency.
• Experienced Directors: The current board includes directors appointed since incorporation without disqualification records, which is a positive governance indicator.

4. Due Diligence Notes:

• Investigate the nature and collectability of the large debtor balances owed by associates to assess liquidity risks more accurately.
• Obtain detailed income statement data or management accounts to evaluate operational performance and cash flow generation, which are absent from accounts.
• Clarify the company’s business model sustainability given the negative equity and reliance on related parties, including any plans for recapitalization or restructuring.
• Review any contingent liabilities or off-balance sheet obligations not disclosed in the limited accounts.
• Confirm whether there are any director loans or intercompany funding arrangements that could impact solvency.