PIERI LTD

Executive Summary

PIERI LTD, a micro-entity specialising in specialised design activities, exhibits high financial risk due to negative working capital and near depletion of shareholders’ funds within two years. While compliance with filing deadlines is positive, lack of audit and limited disclosures restrict transparency. Further investigation into cash flows, liabilities, and operational viability is recommended before investment consideration.

PIERI LTD - Analysis Report

Company Number: 14120684

Analysis Date: 2025-07-29 18:25 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks based on the latest financial data. Net current liabilities have increased sharply, and shareholders’ funds have almost completely eroded within two years of operation.

2. Key Concerns:

• Negative Net Working Capital: Current liabilities (£8,664) exceed current assets (£5,613) by £3,051 as of May 2024, indicating potential cash flow difficulties to meet short-term obligations.
• Dramatic Decline in Equity: Shareholders’ funds fell from £6,288 in 2023 to a nominal £12 in 2024, suggesting losses or withdrawals that have depleted net assets.
• Lack of Audit and Limited Financial Disclosure: As a micro-entity, the company has not been audited and has excluded profit and loss accounts, limiting insight into operational performance and profitability trends.

3. Positive Indicators:

• Compliance with Filing Requirements: The company has filed accounts and confirmation statements on time with no overdue filings, indicating regulatory compliance.
• Single Director and PSC Control: The director, Stefano Pieri Vincentelli, has full ownership and control, which may facilitate rapid decision-making.
• No Indications of Insolvency Proceedings: The company is active with no records of liquidation, administration, or receivership.

4. Due Diligence Notes:

• Investigate the causes of the rapid erosion of shareholders’ funds and whether losses are ongoing or one-off.
• Review cash flow statements and bank account details to assess liquidity management and ability to meet obligations.
• Confirm the nature and timing of current liabilities to understand if they are trade payables, accrued expenses, or short-term borrowings.
• Obtain more detailed operational and financial performance data, including revenue, gross margin, and expense trends, to evaluate business sustainability.
• Assess reliance on director funding or external financing to support operations, given limited equity.