PERRY COMPUTERS LTD

Executive Summary

PERRY COMPUTERS LTD, a micro-entity in the computer repair sector, exhibits solid financial health for its first year with positive liquidity and equity. While current assets sufficiently cover short-term liabilities, the company should focus on building financial reserves and managing medium-term debts to ensure sustainable growth. With prudent cash flow management and strategic expansion, the outlook is cautiously optimistic.

PERRY COMPUTERS LTD - Analysis Report

Company Number: 14705837

Analysis Date: 2025-07-20 12:15 UTC

Financial Health Assessment for PERRY COMPUTERS LTD

---

1. Financial Health Score: B

Explanation:
PERRY COMPUTERS LTD shows a sound financial footing for a newly incorporated micro-entity. The company has positive net current assets and net assets, indicating adequate liquidity and solvency at this early stage. However, the modest scale of operations and limited asset base suggest caution as the company is still in its infancy with limited financial history. The grade B reflects a generally healthy status but with room for growth and improvement.

---

2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	1,500	Indicates some investment in long-term assets (likely equipment for repair activities).
Current Assets	3,000	Represents short-term resources like cash or receivables; a modest buffer for operations.
Current Liabilities	2,000	Short-term debts or payables; manageable relative to current assets.
Net Current Assets	1,000	Positive working capital, a vital “healthy cash flow” sign indicating ability to cover debts.
Creditors > 1 Year	1,000	Medium-term liabilities; not excessive but requires ongoing monitoring.
Net Assets (Equity)	1,500	Positive owner equity shows solvency and stakeholder confidence.
Shareholders Funds	1,500	Funds invested by owner and retained earnings; aligns with net assets.
Employees	1	Very small workforce consistent with micro-entity status; low overhead risk.

---

3. Diagnosis

PERRY COMPUTERS LTD exhibits the "vital signs" of a financially stable start-up micro-enterprise operating in the niche of computer and peripheral equipment repair. The positive net current assets reflect a healthy cash flow position, meaning the company can comfortably cover its immediate debts, a good sign of operational efficiency and liquidity.

The presence of some fixed assets indicates investment in necessary tools or equipment, essential for the service nature of the business. The modest level of creditors falling due after one year is not alarming but suggests the company has some medium-term obligations that must be managed carefully.

The single employee count is consistent with a start-up phase and implies low wage liabilities, reducing financial strain. The ownership and control concentrated in one individual, Mrs. Nadine Louise Fridd, ensures clear decision-making authority but could also present risk if business continuity planning is not addressed.

Overall, the company is in a stable "healthy" financial state but remains vulnerable due to its small size, limited asset base, and early operational stage.

---

4. Recommendations

• Cash Flow Monitoring: Continue to closely monitor cash inflows and outflows to maintain positive working capital. Early-stage companies often face cash flow "symptoms of distress" if receivables or payables become unbalanced.
• Build Reserves: Aim to increase retained earnings or shareholder funds to strengthen the equity base and provide a buffer against unforeseen expenses.
• Manage Medium-Term Debt: Carefully plan repayment or refinancing strategies for the £1,000 creditors due after one year to avoid liquidity squeeze.
• Diversify Workforce: As business grows, consider hiring or subcontracting additional skilled technicians to reduce dependence on a single employee.
• Risk Management: Develop contingency plans to address risks related to single-person control and ensure business continuity.
• Growth Strategy: Explore marketing and customer acquisition initiatives to expand revenue base beyond the initial phase.

---