P.T VEHICLE TECH LTD

Executive Summary

P.T VEHICLE TECH LTD is facing severe financial distress with minimal net assets and working capital. Immediate steps to improve liquidity and potentially inject capital are essential to restore financial health and ensure business continuity.

P.T VEHICLE TECH LTD - Analysis Report

Company Number: 13538630

Analysis Date: 2025-07-20 17:46 UTC

Financial Health Assessment of P.T VEHICLE TECH LTD

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1. Financial Health Score: D

Explanation:
The company's financial position shows severe signs of distress in the latest financial year. Net current assets and net assets have drastically declined to just £1, indicating critical liquidity and solvency issues. This is a red flag akin to a patient whose vital signs are barely measurable, signaling urgent need for intervention.

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2. Key Vital Signs

Metric	2024 (£)	Interpretation
Current Assets	2,464	Very low cash/resources available
Current Liabilities	2,463	Almost equal to current assets - liquidity tight
Net Current Assets	1	Working capital nearly zero - "cash flow starvation"
Net Assets (Equity)	1	Company "worth" is nearly zero - insolvent territory
Shareholders Funds	1	Owner’s stake almost wiped out
Average Employees	2	Small workforce - limited operational scale

Trend:

• Dramatic decline from previous years where net assets were in the hundreds (£344 in 2023 and £2,699 in 2021).
• Current liabilities have increased sharply relative to assets.
• The balance sheet is essentially balanced on a knife-edge.

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3. Diagnosis: What the Numbers Reveal

• Liquidity Crisis: The almost equal current assets and liabilities mean the company has virtually no buffer to cover short-term debts. This is akin to a patient with a dangerously low blood pressure—any minor shock could cause collapse.
• Eroded Equity: With net assets at £1, the business has effectively lost its financial "muscle." This suggests prior losses or write-downs have severely depleted retained earnings.
• Operational Scale: The company remains micro-sized, with only 2 employees, limiting its capacity to generate significant cash flow or absorb financial shocks.
• Risk of Insolvency: The financial state raises concerns about the company’s ability to continue as a going concern without immediate remedial action.
• No Audit Requirement: As a micro entity, the accounts are unaudited, so there may be less scrutiny, but the stark figures are concerning enough on face value.

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4. Recommendations: Steps to Improve Financial Wellness

• Improve Cash Flow Management:
  Conduct a thorough review of receivables, payables, and inventory to free up working capital. Explore options such as negotiating longer payment terms with suppliers or accelerating customer payments.

• Restructure Debt:
  Consider refinancing or rescheduling short-term liabilities to alleviate immediate cash flow pressures.

• Cost Control:
  Review all operating expenses and reduce non-essential costs to preserve cash. Given the small workforce, ensure productivity is maximized.

• Capital Injection:
  The sole shareholder (Mr. Paul Thomas) may need to consider injecting additional equity to restore the balance sheet strength and provide a financial cushion.

• Strategic Review:
  Reassess the business model, pricing, and market positioning to improve profitability and revenue generation—akin to prescribing a new treatment plan.

• Seek Professional Advice:
  Engage with a financial advisor or insolvency practitioner early to explore all rescue options before the symptoms worsen.

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Executive Summary

P.T VEHICLE TECH LTD is currently exhibiting critical financial distress, with net assets reduced to just £1 and working capital nearly depleted. This fragile balance sheet signals urgent liquidity and solvency concerns requiring immediate corrective measures, including cash flow improvements and possible capital infusion, to avoid insolvency risks.