PULSE EVENTS AND TRAINING LTD

Executive Summary

Pulse Events and Training Ltd currently demonstrates high financial risk characterized by negative net assets and insufficient liquidity to cover short-term liabilities. While compliance with filing requirements and stable staffing are positives, the company’s deteriorating financial position warrants thorough scrutiny of solvency and cash flow stability before investment consideration.

PULSE EVENTS AND TRAINING LTD - Analysis Report

Company Number: 13584885

Analysis Date: 2025-07-29 13:13 UTC

1. Risk Rating: HIGH
   The company exhibits a negative net asset position and persistent liabilities exceeding assets, indicating solvency concerns. The extremely low current assets (£1) against current liabilities (£284) suggest acute liquidity issues. The decline in fixed assets and net assets over recent years further underscores operational instability.

2. Key Concerns:

• Negative Net Assets: The balance sheet shows net assets of -£1,057 in 2024 (down from -£1,268 in 2023), meaning liabilities exceed assets and shareholders' funds are negative, a strong solvency red flag.
• Poor Liquidity: Current assets of £1 against current liabilities of £284 indicates the company lacks short-term resources to meet imminent obligations, heightening default risk.
• Deteriorating Asset Base: Fixed assets have declined from £2,625 in 2021 to only £875 in 2024, suggesting potential asset disposals or impairment that could affect operational capacity.

3. Positive Indicators:

• Compliance: Accounts and confirmation statements are filed on time, indicating adherence to statutory requirements.
• Stable Workforce: The company maintains a consistent average employee count of 2, reflecting some operational continuity.
• Active Status: The company remains active and not in liquidation or administration, showing no formal insolvency proceedings to date.

4. Due Diligence Notes:

• Investigate causes for negative shareholders’ funds and whether the company is at risk of breach of Companies Act capital maintenance rules.
• Review cash flow statements and bank position to assess true liquidity beyond nominal current assets figure.
• Clarify the nature of creditors falling due after more than one year (£1,649) and whether there are any related party loans or onerous terms.
• Evaluate management plans to improve financial stability and whether there are any going concern disclosures or audit qualifications (though this is a micro-entity).
• Examine recent director changes for any operational or strategic shift that might impact company viability.