RAF-FIX GARAGE SOLUTION LTD

Executive Summary

RAF-FIX GARAGE SOLUTION LTD exhibits a recent positive shift in financial position with net assets turning positive in 2024 after consecutive years of net liabilities. However, the company’s very low asset base and micro-entity scale present liquidity and operational risks that require further analysis. Current regulatory compliance and active status are favorable, but investors should seek deeper insights into the company’s financial turnaround and business sustainability before committing capital.

RAF-FIX GARAGE SOLUTION LTD - Analysis Report

Company Number: 13628995

Analysis Date: 2025-07-20 18:47 UTC

1. Risk Rating: MEDIUM

The company’s balance sheet shows a significant turnaround from negative net assets in 2023 (-£8,777) to positive net assets in 2024 (£1,825). While this improvement is positive, the absolute net asset value remains very low, indicating limited financial buffer. The micro-entity status and minimal fixed assets suggest a small-scale operation with potentially limited operational resilience.

2. Key Concerns:

• Volatility in Net Assets: The company reported substantial net liabilities for fiscal years 2022 and 2023 which reversed in 2024. Such fluctuations can signal operational or accounting irregularities or recent capital injections that need further clarification.
• Low Asset Base and Working Capital: Total assets and current assets are minimal (£1,258 current assets in 2024), with current liabilities of £533, indicating restricted liquidity to meet short-term obligations comfortably.
• Limited Scale and Staffing: With only one employee on average and micro-entity classification, the business may be vulnerable to operational risks such as overdependence on key personnel or limited capacity to scale or absorb shocks.

3. Positive Indicators:

• Current Compliance with Filing Requirements: Accounts and confirmation statements are up to date with no overdue filings, indicating sound regulatory compliance.
• Improved Financial Position in Latest Year: The shift from negative to positive net assets and net current assets in 2024 suggests improved solvency and potential operational turnaround.
• No Indication of Insolvency or Liquidation: The company remains active with no signs of administration or receivership, showing ongoing operational stability.

4. Due Diligence Notes:

• Review detailed trading and cash flow statements (not available here) to understand the cause of prior years’ net liabilities and the source of funds to restore net assets.
• Confirm the nature of current liabilities and assess any contingent liabilities or off-balance sheet risks.
• Investigate the business model and client base to evaluate operational sustainability given the very small scale and limited staffing.
• Verify director conduct records and any related party transactions given the company’s size and potential exposure to director influence.
• Assess any recent changes in accounting policies or capital structure explaining the drastic changes in net asset figures.