RALLY WARRIOR LIMITED

Executive Summary

Rally Warrior Limited has experienced a marked decline in financial health over the latest year, with working capital and equity erosion raising significant credit risk concerns. The company's limited operational scale and tight liquidity position suggest it is currently vulnerable to financial stress. Credit facilities are not recommended without additional support or assurances.

RALLY WARRIOR LIMITED - Analysis Report

Company Number: 13180378

Analysis Date: 2025-07-29 16:55 UTC

1. Credit Opinion: DECLINE
   Rally Warrior Limited shows a significant deterioration in financial position over the most recent year, with net current assets falling sharply from £96.2k in 2023 to only £2.7k in 2024, and shareholders’ funds dropping from £104.5k to £9.7k. This indicates a substantial decline in working capital and equity, raising concerns about the company's ability to service debt or absorb financial shocks. The very low share capital (£13) and micro-entity status suggest limited financial buffer. The company operates in a niche sports activity sector with only one employee, which limits operational scale and resilience. Given these factors, the risk of financial stress is high, and credit approval is not recommended without strong mitigating information or guarantees.

2. Financial Strength:
   The balance sheet reflects a fragile financial structure. Fixed assets are minimal (£7k), and current liabilities have increased significantly from £7k to £47k, nearly matching current assets (£50k). The working capital position is marginal at £2.7k, indicating potential liquidity constraints. The steep decline in shareholders’ funds over one year by approximately £95k signals losses or capital erosion, undermining net asset strength. The company’s micro category limits the amount of detailed financial disclosures, but the trend is clearly negative, reducing financial stability and creditor protection.

3. Cash Flow Assessment:
   Current assets are mainly short-term resources, but the near parity with current liabilities implies tight liquidity with little margin for operational cash flow disruptions. The sharp increase in current liabilities without a corresponding increase in current assets suggests potential cash flow pressure to meet short-term obligations. No detailed cash flow statement is provided, but the balance sheet changes imply that the company may be relying on creditor financing or delayed payments. The marginal net current assets raise concerns about the company’s ability to maintain sufficient working capital to fund day-to-day operations.

4. Monitoring Points:

• Track subsequent filings for improvements or further deterioration in working capital and equity.
• Monitor debtor and creditor aging to assess cash flow timing and potential collection issues.
• Evaluate any external funding injections or director loans that might support liquidity.
• Watch for changes in business activity or new contracts that could restore profitability.
• Review director conduct and credit history periodically given the small scale and reliance on one controlling individual.