Financial Health Assessment: PERIGON UK LIMITED

1. Financial Health Score: F (Critical Condition)

This company is in terminal decline. The patient has been moved to palliative care — the directors have committed to cease trading, and the business is being wound down. While some vital signs have stabilised in 2025 compared to the catastrophic deterioration in 2023-2024, this improvement is attributable to intercompany debt restructuring rather than any operational recovery. The company is entirely dependent on life support from its parent company and cannot survive independently.

2. Key Vital Signs

Additional Diagnostics from Filed Accounts

3. Diagnosis

The Patient's History: A Decade in Decline

2016-2022: Chronic but Manageable Condition

The company traded with modest net assets ranging from £260,829 to £551,523. However, cash reserves were consistently thin (ranging from £12,686 to £203,714), suggesting the business was always operating on tight working capital — like a patient with low blood pressure who functions but is vulnerable to shocks.

2023: The Cardiac Event

Net assets collapsed from £384,438 to negative £315,143 — a deterioration of nearly £700,000 in a single year. Shareholders' funds plunged to -£1,275,411. This suggests either massive trading losses, asset write-downs, or a significant increase in intercompany liabilities. The company became technically insolvent.

2024: Multi-Organ Failure

The deterioration worsened dramatically. Net assets fell to -£1,128,811. Shareholders' funds reached -£2,089,079. Current liabilities ballooned to £1,669,433 while cash was only £40,100. The company was kept alive only through parent company support.

2025: Stabilisation on Life Support — But the Decision to Withdraw Treatment

The 2025 accounts show apparent improvement: net assets improved to -£196,594 and shareholders' funds improved to -£1,156,862. However, this "recovery" is an illusion:

• £599,024 of tangible assets were disposed — the company sold off its equipment and leasehold improvements
• Current liabilities reduced from £1.67M to £405k — this is almost certainly intercompany debt forgiveness or restructuring, not operational debt reduction
• An onerous lease provision of £72,788 was recognised — the company is paying to exit its premises
• Operating lease commitments fell from £427,925 to just £10,408 — the company is unwinding its property commitments
• The accounts explicitly state: "the company had committed to cease trading"

Root Cause Analysis

The underlying disease appears to be an unsustainable business model in the UK market. The company (formerly Trichord Limited, rebranded to Perigon UK in 2023) was engaged in manufacturing plastic products and providing printing services for 3D objects. The German and Swiss directorship, combined with the German-language website, suggests this was a UK subsidiary of a European group.

The UK operation has been unable to generate sufficient profitability to sustain itself, leading to: 1. Accumulated trading losses eroding all equity reserves 2. Growing dependence on parent company funding 3. Ultimate decision to cease UK operations

The Going Concern Caveat

The accounts include a going concern basis, but only because "the company is reliant upon support from the parent company and other group companies, who will continue to provide the necessary finance." This is the financial equivalent of a patient whose heart continues beating only because of external life support — remove the parent company's support, and the company cannot meet its liabilities as they fall due.

4. Recommendations

For the Parent Company / Group

1. Formalise the Cessation Plan: The company has committed to cease trading. Ensure an orderly wind-down with a formal creditors' voluntary liquidation if necessary, rather than allowing the company to drift.

2. Settle the Onerous Lease: The £72,788 provision should be settled promptly. Negotiate the best possible exit terms with the landlord.

3. Collect Outstanding Debtors: Debtors increased from £119,440 to £163,027. In a wind-down scenario, collect these aggressively — they may represent intercompany balances that need resolving.

4. Consider Capital Reduction: If the company is to remain within the group for any purpose, consider a formal capital reduction to clean up the balance sheet, though this seems unnecessary given the cessation decision.

For Creditors and Stakeholders

1. Monitor Parent Company Solvency: The only assurance for creditors is the parent company's support. If the parent experiences financial difficulties, Perigon UK's liabilities could crystallise rapidly.

2. Verify Intercompany Balances: The significant reduction in current liabilities from £1.67M to £405k warrants scrutiny. Ensure this represents genuine debt restructuring or forgiveness rather than balance sheet manipulation.

3. Employees: With 9 employees and a cessation decision, ensure all employment law obligations are met including redundancy payments and consultation requirements.

For Potential Acquirers or Partners

1. No Going Concern Value: The company has no value as a going concern. Any interest would be in specific assets (intellectual property, customer relationships, equipment) rather than the business as a whole.

2. Due Diligence on IP: The Trichord/Perigon technology for transferring designs onto 3D objects may have value. Assess whether this resides in the UK company or the parent.

Prognosis: Terminal

Perigon UK Limited will not recover. The decision to cease trading has been made and formalised in the 2025 accounts. The company is in the final stages of winding down its UK operations. The only question remaining is whether this will be an orderly cessation or a disorderly one.

The parent company appears committed to managing an orderly exit, as evidenced by: - Asset disposals to reduce the balance sheet - Lease termination negotiations - Continued financial support during wind-down

Expected Timeline: The company will likely be dissolved or placed into members' voluntary liquidation within 12-24 months, once all assets are realised, creditors settled (primarily the parent company), and outstanding obligations cleared.

Risk Factors: If the parent company withdraws support prematurely, or if unexpected liabilities emerge, the company could be forced into creditors' voluntary liquidation or even administration, though this seems unlikely given the current trajectory.