RAMS EXTRACTION CLEANING LTD

Executive Summary

Rams Extraction Cleaning Ltd is solvent with positive net assets and good regulatory compliance but shows signs of liquidity pressure due to reduced cash balances and reliance on director loans. The company operates on a small scale with limited fixed assets and workforce, which may limit operational resilience. Further investigation into cash flow performance and director funding arrangements is recommended to fully assess financial stability.

RAMS EXTRACTION CLEANING LTD - Analysis Report

Company Number: 13100583

Analysis Date: 2025-07-19 11:55 UTC

1. Risk Rating: MEDIUM
   The company demonstrates positive net current assets and shareholder funds, indicating solvency, but the low absolute cash balances and significant reliance on director advances present liquidity and operational risks.

2. Key Concerns:

• Liquidity Constraints: Cash at bank dropped substantially from £21,654 in 2022 to £9,022 in 2023, which may signal cash flow pressure given the close current liabilities of £8,832 in 2023.
• Reliance on Director Advances: The company shows a director loan balance of £7,229 at year-end, indicating dependency on related party funding to meet obligations, which could be a risk if this support is withdrawn.
• Small Scale and Limited Employee Base: With only one employee on average and very modest fixed assets (£300 net book value), the company’s operational scale is limited, potentially constraining growth and resilience.

3. Positive Indicators:

• Solvency Maintained: Shareholders’ funds increased from £736 in 2022 to £849 in 2023, reflecting retained earnings accumulation and a positive net asset position.
• Up-to-Date Filing Compliance: Accounts and confirmation statements are filed on time with no overdue filings, showing good regulatory compliance and governance.
• Stable Ownership and Control: The main director, Mr. Rabnawaz Qureshi, holds majority control and has been consistent since incorporation, which may indicate stable leadership.

4. Due Diligence Notes:

• Review Cash Flow Statements and Profitability: The absence of an income statement in filings necessitates assessment of revenue, profitability, and cash flow trends to better understand operational sustainability.
• Analyze Director Loan Terms: Scrutinize the nature of advances from directors, repayment terms, and any risks associated with potential withdrawal of these funds.
• Investigate Customer and Supplier Concentration: Confirm whether the small scale and debtor balances imply customer concentration risks or dependency on limited contracts.
• Verify Fixed Asset Utilization: Understand the role of tangible assets in operations and whether the low asset base could impact service delivery or growth capacity.