PSR WEALTH MANAGEMENT LIMITED

Executive Summary

PSR Wealth Management Limited faces high financial risk primarily driven by acute liquidity constraints and minimal equity buffers. While regulatory compliance is maintained and ownership structure is stable, the company’s ability to meet current obligations is doubtful without material changes. Thorough investigation into creditor composition and cash flow is recommended before considering investment.

PSR WEALTH MANAGEMENT LIMITED - Analysis Report

Company Number: 13791744

Analysis Date: 2025-07-29 17:25 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency risk due to current liabilities vastly exceeding current assets, resulting in very negative net working capital. The minimal net equity and reliance on director loans further elevate financial vulnerability.

2. Key Concerns:

• Negative Net Current Assets: With current liabilities (£506k) far exceeding current assets (£16k) in 2023, the company faces a severe liquidity shortfall, raising doubts about its ability to meet short-term obligations.
• Minimal Shareholders’ Funds: Equity is nominal (£436 in 2023) and declining, indicating limited buffer to absorb losses or financial shocks.
• High Other Creditors Balance: The substantial "Other creditors" figure (£469k) may indicate unpaid liabilities or deferred payments that could crystallize, threatening operational continuity.

3. Positive Indicators:

• No Filing or Compliance Issues: Accounts and confirmation statements are up to date, indicating good regulatory compliance and governance practices.
• Established Ownership and Control: The sole ultimate controlling party is clearly identified, which may facilitate decisive management and strategic direction.
• Intangible Asset Base: The company holds significant goodwill (£490k), suggesting underlying business value or acquisition history.

4. Due Diligence Notes:

• Clarify the nature and terms of "Other creditors" to assess the timing and likelihood of repayment or risk of default.
• Investigate cash flow management and working capital strategies given the persistent negative net current assets over multiple years.
• Review director loan arrangements and repayment history to ensure no contingent liabilities or conflicts.
• Evaluate the recoverability and impairment status of goodwill given its sizeable carrying amount.
• Confirm the company’s revenue streams and profitability outlook to understand operational sustainability.