PERBECK ADVISORY LIMITED

Executive Summary

Perbeck Advisory Limited shows strong net asset growth and a solid equity foundation, indicating a fundamentally healthy business. However, a notable drop in current assets and working capital signals liquidity tightening, which should be closely monitored to maintain operational flexibility. With prudent cash management and strategic oversight of fixed asset investments, the company is well positioned for continued financial wellness.

PERBECK ADVISORY LIMITED - Analysis Report

Company Number: 12754555

Analysis Date: 2025-07-20 13:38 UTC

Financial Health Assessment for PERBECK ADVISORY LIMITED

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1. Financial Health Score: B

Explanation:
The company exhibits strong net asset growth and a solid equity base, indicating overall financial stability. However, the significant reduction in current assets and working capital in the latest year compared to prior years suggests some liquidity tightening. This warrants attention but does not currently signal critical distress.

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2. Key Vital Signs

Metric	2024 (latest)	Interpretation
Fixed Assets	£442,435	Significant increase from prior years, possibly investment in long-term assets (healthy growth).
Current Assets	£56,637	Sharp decrease from £411,589 in 2023, indicating less liquid resources available.
Current Liabilities	£9,075	Decreased from previous year, easing short-term obligations.
Net Current Assets (Working Capital)	£89,048	Declined sharply from £499,244 in 2023, signaling reduced short-term financial buffer.
Net Assets / Shareholders’ Funds	£530,146	Increased, showing strong equity position and retained earnings accumulation.
Share Capital	£100	Minimal, typical for a micro entity.
Employee Count	1	Very small operation, low fixed overheads.

Interpretation:

• The healthy cash flow analogy applies to net current assets: a sharp drop suggests the company has less immediate liquidity to cover short-term liabilities, a symptom that should be monitored closely.
• The large increase in fixed assets indicates potential strategic investment or acquisition of long-term resources, which can be positive if funded sustainably.
• The strong net assets and equity base indicate heart and core strength in the business, showing resilience and retained value.

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3. Diagnosis

PERBECK ADVISORY LIMITED is in a generally sound financial condition with a robust equity base and growing fixed asset investments, suggesting confidence in the company’s long-term prospects. However, the sudden and significant reduction in current assets (such as cash or receivables) and working capital in the latest year is a symptom of liquidity tightening. This could mean cash is being tied up in long-term assets or that receivables and cash reserves have diminished, which may stress day-to-day operational flexibility.

The company has no overdue filings, maintains compliance, and operates with minimal employees, which reduces operational risk. The director’s loan being fully repaid by the year-end also reflects good internal cash management discipline.

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4. Recommendations

• Monitor Liquidity Closely: The decline in current assets and working capital is like a dip in blood pressure; while not immediately dangerous, it signals the need for careful monitoring of cash flows and short-term obligations. Ensuring timely collection of receivables and managing payables prudently is critical.
• Review Fixed Asset Strategy: Confirm that the increase in fixed assets is aligned with long-term strategic goals and backed by sustainable funding to avoid overextension.
• Maintain Financial Buffers: Aim to rebuild current asset levels to ensure a healthier working capital position that comfortably covers liabilities, enhancing operational stability.
• Prepare for Contingencies: Given the micro entity status and small team, consider contingency plans for unexpected expenses or downturns.
• Regular Financial Review: Conduct quarterly financial reviews to spot early signs of liquidity stress and adjust business plans accordingly.

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