15 NKR RTM COMPANY LTD

Executive Summary

15 NKR RTM Company Ltd faces significant financial challenges, with low cash reserves, increasing negative equity, and insufficient working capital indicating liquidity and solvency risks. Immediate focus on cash flow management, liability restructuring, and possible capital injection is critical to stabilize the company’s financial health and ensure ongoing viability.

15 NKR RTM COMPANY LTD - Analysis Report

Company Number: 13252254

Analysis Date: 2025-07-19 12:43 UTC

Financial Health Assessment of 15 NKR RTM Company Ltd

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1. Financial Health Score: D

Explanation:
The company is exhibiting clear symptoms of financial distress. It has persistent net liabilities (negative net assets) over four years, with increasing deficit levels. Low cash reserves relative to current liabilities indicate weak liquidity, and limited working capital signals potential difficulty meeting short-term obligations. The absence of audit and small company exemption limits visibility but does not mask the underlying financial fragility. Overall, the financial "vital signs" are concerning, warranting caution and active remedial action.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Cash at bank and in hand	£209	Critically low cash buffer; weak liquidity ("dehydrated cash flow").
Current Liabilities	£1,535	Short-term debts exceed cash by ~7x, risk of payment delays.
Net Assets (Equity)	-£1,326	Negative equity indicates "poor health," liabilities exceed assets.
Working Capital (Cash - Current Liabilities)	-£1,326	Negative working capital suggests inability to cover immediate debts.
Trend in Net Assets	Down from -£420 (2021) to -£1,326 (2024)	Worsening "symptom," increasing deficit indicates accumulation of losses.
Staffing	3 persons, no salaried staff	Lean operational model, possibly limiting capacity but also costs.

Additional Observations:

• The company is a private limited by guarantee entity, with no share capital, limiting its ability to raise equity.
• No audit required due to small company exemption, but financial statements are unaudited, increasing risk of undetected issues.
• Directors are experienced consultants and entrepreneur, but no direct indication of financial restructuring or capital injection.
• The company operates in residents' property management (SIC 98000), a sector sensitive to cash flow and timely payments.

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3. Diagnosis

Underlying Financial Condition:
15 NKR RTM Company Ltd is currently in a state akin to a patient with chronic illness that is not improving. The persistent negative net assets (deficit) reveal that the company’s liabilities consistently outstrip its assets, indicating the business is undercapitalized or has accumulated losses over time. The cash "pulse" is weak, with only £209 available at year-end against £1,535 of short-term liabilities—this is a symptom of liquidity stress that could lead to payment delays or default.

The company’s working capital is negative, meaning it lacks the "healthy buffer" of short-term funds to meet its immediate financial obligations. This condition suggests potential difficulty in managing day-to-day operations without external support or additional funding.

The absence of salaried staff and limited scale may help control costs but also may restrict growth or operational flexibility. The company relies on directors and consultants, which might indicate a lean cost structure but also potential strain on resources.

The financial statements’ small company exemption and unaudited status limit the transparency but do not hide the evident financial weakness.

Summary: The business is showing symptoms of financial distress, with weakening equity and fragile liquidity. Without intervention, this condition risks worsening, potentially leading to solvency problems.

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4. Recommendations

To improve the financial wellness of 15 NKR RTM Company Ltd, the following actions are advised:

1. Cash Flow Management:

   • Immediately strengthen cash reserves to build a safety net.
   • Enhance collection processes for any receivables and control disbursements to preserve liquidity.

2. Liability Restructuring:

   • Negotiate with creditors to extend payment terms or reduce liabilities where possible to ease short-term pressure.

3. Capital Injection:

   • Consider raising additional funds from members or external sources, even though the company is limited by guarantee, to shore up equity and improve net asset position.

4. Operational Review:

   • Assess the cost structure and explore efficiency improvements.
   • Evaluate whether current staffing and consultant arrangements are sustainable given the financial constraints.

5. Financial Monitoring:

   • Implement regular financial health "check-ups," monitoring cash flow, working capital, and net assets to detect early warning signs.
   • Consider voluntary audit or independent financial review for improved transparency and stakeholder confidence.

6. Strategic Planning:

   • Develop a turnaround or growth plan aligned with market conditions in property management to improve revenue and profitability.

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