PLUS PURSUITS LIMITED

1. Credit Opinion: CONDITIONAL

Plus Pursuits Limited presents a strong balance sheet with net assets of £382,099, cash reserves of £296,944, and modest current liabilities of £61,597. The company has rebuilt equity from a negative position in 2016 to a solid positive position and carries no evident bank borrowings. However, no profit and loss account is filed under the small companies regime, so repayment capacity from trading cannot be independently verified, and a material director’s current account balance requires clarification. Conditional approval is appropriate for a modest unsecured facility, subject to sight of recent management accounts, a cash flow forecast, and confirmation of the terms and repayment of the director’s current account.

2. Financial Strength

• Net assets / equity: £382,099 at 31 March 2026, up from £361,997 in 2025 and from negative £10,833 in 2016. This indicates a sustained period of retained profit accumulation.
• Shareholders’ funds: Equal to net assets at £382,099. Called-up share capital is only £2, with the balance held in retained earnings.
• Fixed assets: Tangible assets of £23,229, comprising plant and machinery and motor vehicles.
• Gearing: Very low. Total creditors are £74,558, of which £61,597 falls due within one year and £12,961 after more than one year (all hire purchase). No bank debt is apparent.
• Liquidity ratios: Current assets of £433,428 against current liabilities of £61,597 implies a current ratio of approximately 7:1. Net current assets are £371,831.

3. Cash Flow Assessment

• Cash position: £296,944 at 31 March 2026 (£312,583 in 2025), having increased from nil in 2018. Absolute liquidity is strong.
• Working capital: Net current assets of £371,831 provide a substantial buffer against short-term obligations.
• Creditor composition: Current creditors of £61,597 are dominated by taxation and social security of £53,495, a statutory liability requiring timely settlement.
• Debtor quality: Total debtors of £136,484 include £65,635 owed by a director and £48,710 classified as other debtors; trade debtors are only £22,139. Short-term liquidity is therefore partly reliant on a related party balance.
• Cash flow visibility: No cash flow statement or profit and loss account is filed, so operating cash generation and debt service capacity from trading cannot be assessed from public filings.

4. Monitoring Points

• Director’s current account balance of £65,635, including any movement, repayment, or increase.
• Trend in cash balances and monthly management accounts once provided.
• Timely settlement of taxation and social security liabilities.
• Continued compliance with Companies House filing deadlines (currently up to date).
• Any reduction in net assets or shareholders’ funds.
• Related party balances, including a £33,000 advance to a shareholder disclosed in the accounts.