NRP UW LIMITED

Executive Summary

NRP UW Limited is a newly established non-life insurance private company with strong equity but faces liquidity challenges evidenced by negative net working capital. The significant goodwill on the balance sheet warrants scrutiny for impairment risk. Overall, the company appears solvent and compliant, but investors should seek further clarity on cash flow management and related party exposures before proceeding.

NRP UW LIMITED - Analysis Report

Company Number: 14473695

Analysis Date: 2025-07-20 11:53 UTC

1. Risk Rating: MEDIUM
   The company shows a solid equity base with significant shareholders’ funds (£3.15m) relative to its total assets less current liabilities (£2.32m), indicating solvency. However, the net current liabilities position (-£520k) suggests potential liquidity constraints. The company is recently incorporated and operates in the non-life insurance sector, which can be capital intensive and volatile.

2. Key Concerns:

• Negative Net Working Capital: Current liabilities exceed current assets by over half a million pounds, potentially indicating short-term liquidity risk to meet immediate obligations.
• High Intangible Asset Balance: Goodwill of £2.835m represents a large portion of fixed assets and total assets. This could be subject to impairment risk and may not be easily realizable.
• Concentration of Control: One entity, Nrp Midco Limited, holds 75-100% of shares and voting rights, which may pose governance risks if oversight is limited or decision-making is concentrated.

3. Positive Indicators:

• Strong Shareholders’ Funds: Equity substantially exceeds total assets less current liabilities, suggesting the company has a strong capital buffer.
• No Overdue Filings: The company is current on both accounts and confirmation statement filings, reflecting compliance with regulatory requirements.
• Experienced Directors: The board includes multiple directors with relevant insurance underwriting and company directorship experience, which supports operational management.

4. Due Diligence Notes:

• Investigate the nature and valuation basis of the goodwill asset, including the acquisition details and impairment testing performed.
• Review cash flow forecasts and working capital management plans to assess how the company intends to address negative net current assets.
• Evaluate intra-group balances, notably the £906k owed to group undertakings, to understand related party exposure and repayment terms.
• Confirm that the controlling shareholder’s influence aligns with sound governance principles and minority protections where applicable.
• Consider obtaining further financial performance data (profit/loss, cash flows) since this was not provided.