PRS DEVELOPMENTS LTD

Executive Summary

PRS DEVELOPMENTS LTD is currently in a weak financial position characterized by significant negative net assets and severely negative working capital, raising concerns about their ability to meet short-term obligations. The absence of operational scale and deteriorating liquidity position support a credit decline recommendation. Ongoing monitoring of liquidity improvements and management actions is advised before reconsidering credit support.

PRS DEVELOPMENTS LTD - Analysis Report

Company Number: 13614465

Analysis Date: 2025-07-29 16:39 UTC

1. Credit Opinion: DECLINE
   PRS DEVELOPMENTS LTD demonstrates a weak financial position with persistent and growing net liabilities and negative shareholders’ funds. The company’s working capital is deeply negative, indicating a significant inability to meet short-term obligations. No evidence of profitability or cash generation is apparent, and the absence of employees suggests limited operational scale. These factors collectively indicate high credit risk and an inability to service debt or support additional credit facilities at this stage.

2. Financial Strength:
   The company’s fixed assets remain stable at £130,810, but current liabilities have increased materially from £135,594 in 2023 to £163,981 in 2024, while current assets have decreased slightly to £2,003. This has caused net current liabilities to worsen from -£133,117 to -£161,978, leading to an overall net asset deficit of -£31,468. The negative equity position reflects accumulated losses or capital erosion, undermining financial resilience and limiting borrowing capacity.

3. Cash Flow Assessment:
   The extremely low current assets relative to high current liabilities highlight a critical liquidity shortfall, with the company unable to cover short-term debts from readily available resources. No cash or equivalent balances are disclosed, and the micro-entity reporting regime limits available cash flow detail, but the negative net current assets clearly indicate working capital deficiency. This liquidity constraint severely impairs operational flexibility and debt repayment capacity.

4. Monitoring Points:

• Watch for improvements in current assets and reduction in current liabilities to restore positive working capital.
• Monitor any changes in ownership or director appointments that might signal restructuring or capital injection.
• Track filings for profit & loss accounts or cash flow statements for signs of operational turnaround.
• Observe the timing and nature of any new funding or credit facilities to assess management’s ability to stabilize finances.