Company Number: 12843400

Analysis Date: 2025-07-20 18:45 UTC

1. Credit Opinion:
   DECLINE. Perry & Phillips Memorials Limited shows persistent negative net assets and working capital deficits over the last several years, with net liabilities worsening from £16,996 in 2023 to £29,111 in 2024. The company’s ongoing negative equity position signals poor financial health and raises concerns about its ability to meet short-term obligations. The lack of profitability data and limited cash resources further impair confidence in debt servicing capability. Without clear evidence of turnaround or external support, lending exposes the bank to elevated risk.

2. Financial Strength:
   The company is categorized as a micro-entity with minimal fixed assets reported. Current assets are minimal (£1,200 in 2024) against significant current liabilities (£30,311), resulting in a working capital deficit of nearly £29k. Shareholders’ funds are negative and deteriorated year-on-year, indicating accumulated losses exceeding the initial capital of £100. The balance sheet reflects weak capitalization and reliance on creditor funding to support operations.

3. Cash Flow Assessment:
   Cash and liquid resources appear extremely limited, with no detailed cash flow statement provided. The negative net current assets position indicates potential liquidity stress, as current liabilities substantially exceed readily available current assets. This situation suggests challenges in meeting upcoming short-term liabilities without external financing or capital injections.

4. Monitoring Points:

• Improvement in net current assets and shareholders’ funds to positive territory.
• Generation of consistent profits to rebuild equity reserves.
• Timely payment history on trade and financial obligations.
• Any capital infusion or restructuring plans from the parent company Perry & Phillips Holdings Limited.
• Changes in working capital management and cash flow generation.