Company Number: 12775402

Analysis Date: 2025-07-29 20:32 UTC

1. Risk Rating: LOW
   Perry Wallace Ltd demonstrates a solid balance sheet growth with increasing net assets and net current assets over its four years of operation. The company is current with its filings and operates within the micro-entity category, indicating manageable scale and regulatory compliance.

2. Key Concerns:

• Limited financial disclosures restrict visibility on profitability and cash flow trends, typical of micro-entity accounts.
• Reliance on a single director and 75-100% shareholder control by Ms. Xinrong Liang could present governance concentration risk.
• The company is relatively young (incorporated 2020) with limited operational history, which may affect sustainability assessments.

3. Positive Indicators:

• Steady growth in net assets from £2,836 in 2020 to £56,887 in 2024, indicating accumulation of equity and positive net worth.
• Healthy liquidity position with net current assets increasing from £2,836 in 2020 to £52,377 in 2024, suggesting strong working capital management.
• No overdue filings or compliance issues noted; company remains active and in good standing.
• Increment in average employee count from 4 to 6 signals modest business expansion.

4. Due Diligence Notes:

• Obtain profit and loss data or cash flow statements to assess operational profitability and cash generation capability.
• Review director background and any potential related party transactions given the sole director/shareholder structure.
• Confirm nature of current assets composition (cash vs receivables/inventory) to validate liquidity strength.
• Verify business model sustainability in the retail segment classified under SIC 47190, including customer base and market conditions.