R M CHAPMAN TRADING 2 LTD

Executive Summary

R M CHAPMAN TRADING 2 LTD exhibits extremely limited financial activity and resources, with net assets and cash balances stagnant at nominal levels over multiple years. Its financial position and cash flow capability are insufficient to support lending or credit risk. Without evidence of operational improvement or capital injection, the company does not meet creditworthiness standards for approval.

R M CHAPMAN TRADING 2 LTD - Analysis Report

Company Number: SC683715

Analysis Date: 2025-07-29 19:25 UTC

1. Credit Opinion: DECLINE
   R M CHAPMAN TRADING 2 LTD presents a very weak credit profile. The company shows minimal financial activity with total net assets and current assets consistently reported as £1 since incorporation. The absence of meaningful cash, revenues, or working capital undermines its ability to service any credit facility. Additionally, the company operates with only one employee (the director) and no audit or profit and loss statements filed, limiting insight into operational performance. The lack of growth or financial substance indicates a high risk of default or inability to meet financial obligations.

2. Financial Strength:
   The balance sheet shows negligible asset base — net assets and shareholders' funds are reported at £1 across multiple years. There are no fixed assets, no material current assets beyond a nominal £1 cash balance, and no liabilities disclosed. This indicates either dormant or non-trading status despite being active. The capital structure is minimal (£100 share capital), and no retained earnings or reserves exist. Overall, the financial strength is extremely weak, with no buffer to absorb losses or support business operations.

3. Cash Flow Assessment:
   Cash balances are negligible (£1), with no evidence of operating cash inflows or working capital to cover short-term liabilities. Net current assets are minimal and equal to cash, suggesting no receivables or inventory. This implies poor liquidity and inability to manage day-to-day expenses or debt servicing. The company is unlikely to generate positive cash flows or sustain operations without external funding.

4. Monitoring Points:

• Watch for any changes in asset base or working capital to assess operational activity
• Monitor filing of profit and loss accounts or audit reports for better financial transparency
• Track cash flow and liquidity improvements if business activity resumes
• Observe director actions or new appointments indicating strategic changes or capital injections