PYCROFT PROPERTY MANAGEMENT LTD

Executive Summary

Pycroft Property Management Ltd demonstrates elevated financial risk characterized by negative net assets and insufficient liquidity, which may impair its ability to meet obligations. While regulatory compliance is current and management appears stable, the company’s small scale and deteriorating balance sheet warrant thorough due diligence. Additional financial details and operational insights are required to assess prospects for recovery.

PYCROFT PROPERTY MANAGEMENT LTD - Analysis Report

Company Number: 13113561

Analysis Date: 2025-07-20 12:35 UTC

1. Risk Rating: HIGH
   The company exhibits a negative net asset position that has worsened over three years, indicating solvency concerns. Current liabilities exceed current assets by a substantial margin, raising liquidity risks. The company is a micro entity with limited operating scale and no audit oversight, increasing operational risk.

2. Key Concerns:

• Negative Net Assets: The company’s net assets declined from -£350 in 2022 and 2023 to -£2,180 in 2024, signaling accumulated losses and potential insolvency risk.
• Liquidity Shortfall: Current liabilities (£3,500) significantly exceed current assets (£1,037) as of 2024, implying difficulties meeting short-term obligations.
• Limited Financial Scale: The micro-entity status with minimal capital (£100 share capital) and only two employees restricts operational resilience and ability to absorb financial shocks.

3. Positive Indicators:

• Compliance Status: The company is active with all filings up to date, including accounts and confirmation statements, suggesting no immediate regulatory compliance issues.
• Stable Management: Directors have been consistent since incorporation with relevant professional backgrounds (accountant and engineer), which may support operational continuity.
• No Off-Balance Sheet Liabilities: The accounts disclose no off-balance sheet commitments, removing hidden obligations from view.

4. Due Diligence Notes:

• Investigate the nature of current liabilities to assess risk of creditor actions or overdue payments.
• Review income and cash flow trends (not provided) to evaluate operational sustainability and ability to reverse negative equity.
• Confirm absence of related-party transactions or contingent liabilities that may exacerbate financial weakness.
• Assess any plans or recent capital injections by shareholders to improve solvency.
• Consider the directors’ statements or forecasts about future trading prospects and risk mitigation measures.