PERRYMAN PROPERTIES CORNWALL LIMITED

Executive Summary

Perryman Properties Cornwall Limited exhibits moderate solvency with a strong asset base in investment property but faces liquidity challenges due to zero cash and significant current liabilities. The high director loans and bank debt elevate financial risk, warranting further scrutiny of cash flows and financing terms. Compliance with filings and stable control structure are positive governance indicators.

PERRYMAN PROPERTIES CORNWALL LIMITED - Analysis Report

Company Number: 13310849

Analysis Date: 2025-07-29 15:09 UTC

1. Risk Rating: MEDIUM

The company shows a significant asset base dominated by investment property but also a substantial level of creditor obligations, particularly amounts owed to directors and long-term bank loans. The net asset position is positive but modest relative to liabilities, indicating moderate solvency risk. The absence of cash reserves raises liquidity concerns despite the asset-backed nature of the business.

2. Key Concerns:

• Liquidity Position: The company holds zero cash at the year-end and has net current liabilities of approximately £1.8 million, indicating potential short-term liquidity stress.
• High Related Party and Director Loans: Amounts owed to directors total over £1.58 million, comprising a large portion of current liabilities, which may pose refinancing or repayment risk.
• Leverage and Debt Maturity Profile: Total bank loans exceed £1 million with a significant portion due after one year, which could pressure future cash flows, especially given no reported turnover or operating income.

3. Positive Indicators:

• Significant Investment Property Asset: Investment property valued at £2.9 million provides a strong fixed asset base and potential collateral for financing.
• No Overdue Filings: The company is compliant with filing deadlines, indicating good regulatory compliance.
• Stable Ownership and Control: Directors and persons with significant control are consistent and resident in the UK, which supports governance transparency.

4. Due Diligence Notes:

• Verify the liquidity management strategy given zero cash and high current liabilities.
• Review terms and conditions of director loans and bank financing to assess repayment schedules and security.
• Obtain turnover and income details to evaluate operational cash flows, since turnover is not disclosed in the accounts.
• Confirm valuation methodology and marketability of investment property assets.
• Investigate related party transactions for potential conflicts or dependency risks.