R P W UTILITIES LTD

Executive Summary

R P W Utilities Ltd is currently in a weak financial position with negative equity and significant long-term liabilities not supported by sufficient assets or working capital. The lack of income and cash flow disclosures restricts confidence in the company’s ability to meet its debt obligations. Given these risks, credit facilities should be declined unless substantial mitigating factors or collateral are presented.

R P W UTILITIES LTD - Analysis Report

Company Number: 12701485

Analysis Date: 2025-07-29 20:49 UTC

1. Credit Opinion: DECLINE
   R P W Utilities Ltd presents significant credit risk due to its persistent negative net assets and shareholders' funds over multiple years, with net liabilities recorded at £277 as of June 2024. The company carries a large long-term creditor balance of £570,000, which appears to be a substantial financial obligation, not matched by corresponding asset strength or positive equity. The absence of turnover and profitability data (income statement not filed) further impedes assessment of operational cash generation. Given these factors, the firm’s ability to service existing debts or new credit facilities is highly questionable without additional security or guarantees.

2. Financial Strength:
   The balance sheet reveals a heavy reliance on a single large creditor (£570,000 due after more than one year) and minimal current liabilities (£277), resulting in a negative net current asset position (-£277). Fixed assets are recorded at £570,000, but no indication of liquidity or realizable value is provided. Persistent negative shareholders’ funds (equity deficit) indicate that liabilities exceed assets, reflecting poor capital structure and financial fragility. The company’s small share capital (£100) offers little buffer against losses.

3. Cash Flow Assessment:
   Net current assets are negative, indicating working capital deficiency. The company’s current liabilities are minimal and stable, but the large long-term creditor balance is a concern. Absence of income statement and cash flow statements restricts analysis of operational cash flow, but negative equity and working capital deficits suggest limited liquidity and potential cash flow stress. The company has only one employee (the director), and no bank loans or overdrafts are reported, which may limit ongoing financing options.

4. Monitoring Points:

• Monitor any changes in creditor balances, particularly the large long-term creditor of £570,000, and the nature of this creditor (e.g., related party loans).
• Track filing of full financial statements including income and cash flow statements to assess profitability and liquidity trends.
• Watch for improvements in net current assets and shareholders' funds to gauge financial recovery.
• Review director’s ability to generate trading income and manage working capital efficiently.
• Keep an eye on any changes in company status or director appointments that could signal operational or governance issues.