R C SERVICES GROUP LTD

Executive Summary

R C SERVICES GROUP LTD is a newly formed micro-entity with a weak balance sheet showing negative net assets and working capital deficits, indicating financial fragility and limited capacity to service debt. The company’s small scale and lack of operational history increase risk, leading to a credit decline at this stage. Ongoing monitoring of financial improvements and cash flow generation is essential before reconsidering credit exposure.

R C SERVICES GROUP LTD - Analysis Report

Company Number: 15008752

Analysis Date: 2025-07-19 13:04 UTC

1. Credit Opinion: DECLINE
   R C SERVICES GROUP LTD is a newly incorporated micro private limited company in the plumbing, heating, and air-conditioning installation sector. The latest filed accounts show negative net current assets of £2,608 and negative net assets of £2,607, indicating the company is technically insolvent on a balance sheet basis. The absence of fixed assets or long-term liabilities means the company’s resources are limited to current assets, which are already insufficient to cover current liabilities. The company has only two employees and is controlled entirely by one director who is also the sole shareholder. Given the negative equity position and minimal financial buffer, the company currently lacks the financial strength and liquidity to reliably service new debt or credit facilities. There is no historical financial track record beyond the first year to assess performance trends or management effectiveness.

2. Financial Strength:
   The balance sheet reveals a weak financial position. Current liabilities exceed current assets, resulting in a working capital deficit of £2,608. Shareholders’ funds are negative, suggesting accumulated losses or undercapitalization since inception. The company holds no fixed assets, limiting collateral value for secured lending. The capital base is minimal (£1 called-up share capital), and the company relies heavily on short-term funding or possibly director loans not reflected here. Overall, this indicates a fragile financial structure with limited resilience to operational setbacks or economic downturns.

3. Cash Flow Assessment:
   With current assets of only £12,879 against current liabilities of £15,487, liquidity is strained. There is no indication of cash reserves or receivables composition, but the negative net current assets suggest the company may face challenges meeting short-term obligations as they fall due. The small scale of operations (2 employees) and micro-entity status imply limited revenue generation capacity at this stage. Cash flow from operations is not disclosed but is likely constrained, raising concerns about ongoing working capital needs and the ability to absorb unexpected expenses or delays in customer payments.

4. Monitoring Points:

• Track future financial statements for improvement in net assets and working capital position.
• Monitor cash flow statements and notes for evidence of sustained positive operating cash flow.
• Observe any director loans or related party transactions that may impact liquidity or create contingent liabilities.
• Review payment history and credit references once trading history extends beyond the first year.
• Watch for any significant changes in ownership, management, or business model that affect risk profile.