Company Number: 13588271

Analysis Date: 2025-07-20 18:57 UTC

1. Credit Opinion: DECLINE
   PZ Plumber Limited shows a weakening financial position with consistently negative net current assets and a significant reduction in net assets from £12,784 at incorporation to £2,659 in the latest year. The company’s liquidity is strained, evidenced by current liabilities nearly seven times the current assets in 2024, indicating an inability to cover short-term obligations comfortably. Given the micro-entity scale and absence of profitability data, the risk of default on credit facilities is high without additional security or guarantees.

2. Financial Strength:
   The balance sheet reveals declining fixed assets and sharply deteriorating working capital over three years. The net current liabilities have increased from -£6,048 in 2023 to -£9,841 in 2024, driven by a drop in current assets from £6,522 to £1,663. Long-term creditors still account for £7,907, further pressuring equity. Shareholders’ funds have shrunk by half, reflecting either losses or withdrawals, undermining financial resilience. The company remains very small, with only one employee, and limited asset base.

3. Cash Flow Assessment:
   The significant negative working capital position suggests ongoing cash flow challenges. Current liabilities exceed current assets by a wide margin, implying potential difficulty in meeting short-term debts, supplier payments, and operational expenses without external funding. The absence of cash or equivalents detail limits full liquidity analysis, but the trend is unfavorable. The business likely relies on owner funding or credit from suppliers, which may not be sustainable.

4. Monitoring Points:

• Net current assets and liquidity ratios (current ratio, quick ratio) to detect improvements or further deterioration.
• Changes in creditors and debt repayment schedules to assess refinancing or restructuring.
• Profit and loss trends once available, to understand earnings capacity.
• Owner’s financial support or capital injections to bolster equity and liquidity.
• Any overdue filings or adverse credit events that may signal distress.