Company Number: 13083772

Analysis Date: 2025-07-20 18:25 UTC

1. Credit Opinion: DECLINE
   Purti Darmore Ltd demonstrates significant liquidity risk and weak financial health. The company’s current liabilities considerably exceed current assets, resulting in persistent negative net current assets (£-245,604 in 2022 and £-288,232 in 2021). This indicates potential difficulty in meeting short-term obligations. Despite an increase in shareholders’ funds from £26,155 in 2021 to £55,293 in 2022, the overall working capital position remains inadequate. The absence of recent director appointments and limited financial disclosure further reduce confidence in management oversight. Given these factors, the company’s ability to service new or existing credit facilities is questionable without additional security or guarantees.

2. Financial Strength:
   The balance sheet shows a stable level of fixed assets around £300k but is heavily encumbered by current liabilities exceeding £300k, creating a strained liquidity position. Shareholders’ funds have increased modestly, reflecting some retained earnings or capital injection, but remain very low relative to liabilities. The company remains classified as a micro or small entity, with a modest asset base and a negative working capital cycle indicating poor short-term financial resilience. The lack of audit and reliance on micro-entity accounting standards limits transparency and increases risk for lenders.

3. Cash Flow Assessment:
   The company’s cash or liquid current assets are minimal (£58,287 in 2022), while current liabilities are substantial (£303,891), implying a working capital deficit of approximately £245,604. This indicates a potential cash flow gap which could impair the company’s ability to meet immediate debt or supplier obligations. No positive net current assets or clear evidence of cash inflows to cover short-term liabilities were identified. Without operational cash flow improvement or external funding, liquidity constraints may worsen.

4. Monitoring Points:

• Monitor quarterly cash flow statements and working capital trends for improvements.
• Track any changes in current liabilities and efforts to reduce short-term debt.
• Review updates to director appointments and governance to assess management stability.
• Watch for filings of audited accounts or enhanced financial disclosures to improve transparency.
• Observe any capital injections or restructuring efforts to strengthen equity and liquidity.