Company Number: 12648526

Analysis Date: 2025-07-20 15:47 UTC

Financial Health Assessment of PERUM GROUP LTD as of 30 June 2024

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1. Financial Health Score: B

Explanation:
PERUM GROUP LTD demonstrates a solid and improving financial position relative to its micro-entity size. The company shows positive net current assets and a growing net asset base, indicating good short-term liquidity and an emerging buffer in shareholder equity. However, the modest scale of operations and low turnover suggest limited operational scale and reliance on a small asset base, which restrains a higher grade. There are no signs of distress or financial strain, but growth potential and operational scale remain limited.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Turnover	£9,135 (2023 data)	Small but positive sales; limited revenue generation.
Current Assets	£2,855	Healthy short-term assets primarily cash/debtors.
Current Liabilities	£460	Low short-term obligations; manageable within current assets.
Net Current Assets	£2,395	Positive working capital indicates liquidity strength.
Net Assets	£2,495	Growing equity base reflects retained profits or capital injection.
Share Capital	£100	Minimal share capital, typical for micro-business.
Employees	2	Small team size consistent with micro-entity classification.

Interpretation:
The company’s vital signs show a "healthy pulse" for a micro-sized enterprise. Positive net current assets indicate the company can cover its short-term commitments comfortably and maintain operational stability. The growth in net assets from £361 in 2023 to £2,495 in 2024 suggests either retained earnings or additional capital investment, strengthening the company’s financial foundation.

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3. Diagnosis: What The Financial Data Reveals

• Liquidity & Solvency: PERUM GROUP LTD maintains a strong liquidity position with current assets exceeding current liabilities by over five times in 2024. This "healthy cash flow" symptom means the company can meet short-term obligations without distress.
• Growth & Profitability: Turnover is positive but low, typical for a micro-entity in real estate management and agency services. The modest revenue suggests limited market reach or operational scale but no immediate sign of financial strain.
• Capital Structure: Shareholders’ funds grew significantly over the last year, indicating either retained earnings or capital injection, which is a positive sign of financial health. The minimal share capital is normal for a company of this size.
• Operational Stability: Maintaining a consistent workforce of 2 employees aligns with a small but controlled operation. The recent director changes should be monitored but do not yet indicate instability.
• Risk Factors: No overdue filings or indications of financial distress or administration. The company is active and compliant with reporting deadlines.

Overall, PERUM GROUP LTD shows "symptoms of good financial health" with no immediate red flags. The company remains small but stable with a steadily improving balance sheet.

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4. Recommendations: Actions to Improve Financial Wellness

• Enhance Revenue Generation: Focus on marketing and expanding client base in real estate management and agency to increase turnover and drive profitability.
• Monitor Cash Flow Closely: Maintain strong working capital management to ensure liquidity remains robust, especially as operations scale.
• Strengthen Capital Base: Consider incremental capital injections or retaining earnings to build a more substantial equity buffer, improving resilience to market fluctuations.
• Review Director Stability: Ensure smooth management transitions and continuity in leadership to avoid operational disruption. Stability at the helm supports investor and creditor confidence.
• Prepare for Growth: As the company grows beyond micro-entity thresholds, prepare for more comprehensive accounting and governance requirements to maintain compliance and transparency.
• Explore Cost Management: Optimize overhead costs relative to revenue to improve margins and generate a stronger profit reserve.

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