RAPID LOANS LIMITED
Company number 02759847 · Monitor this company
This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.
Investment Risk Analysis: RAPID LOANS LIMITED
1. Risk Rating: LOW
Justification: The company exhibits a robust balance sheet with net assets of £1.82M and minimal liabilities of £9,715. Shareholders' funds have grown consistently over the past decade from £1.49M (2016) to £1.82M (2025). The company has operated for over 30 years with no indication of financial distress, and all statutory filings are current.
2. Key Concerns
Concern 1: Related Party Exposures and Inter-Company Balances
The balance sheet reveals £100,000 "owed by participating interests" (down from £435,000 in 2024). This represents funds advanced to or held by related parties and constitutes approximately 12% of current assets. The nature, recoverability, and terms of these inter-company arrangements are not disclosed. Trade debtors of £753,978 also raise questions about counterparty concentration—who owes this substantial sum and what is the credit risk?
Concern 2: PSC Anomaly — Estate Listed as Controller
The PSC register shows "Mr Alan Henry White (The Estate Of)" holding >75% of shares alongside Mrs Vicki Teresa White. An estate holding PSC status is unusual and typically represents a transitional arrangement following a shareholder's death. This creates uncertainty regarding long-term ownership stability and potential future redistribution of shareholdings. The implications for succession planning and control should be clarified.
Concern 3: Low Return on Assets and Business Model Clarity
The company generated a profit of only £18,869 on total assets of £1.83M—a return on assets of approximately 1%. While the company holds substantial investment property (£643,991, up from £444,868 following £199,123 in additions), the income generated appears modest relative to the asset base. The company name "Rapid Loans" paired with SIC code 96090 ("Other service activities not elsewhere classified") creates ambiguity about the actual trading activity. Is this company still actively lending, or has it transitioned to a property-holding vehicle?
3. Positive Indicators
Strong Solvency Position
Total liabilities of £9,715 against total assets of £1,834,714 yields a debt-to-asset ratio of just 0.5%. The company is overwhelmingly equity-funded with shareholders' funds of £1,824,999. There is virtually no solvency risk.
Consistent Capital Accumulation
Shareholders' funds have grown every year for the past decade (from £1,485,638 in 2016 to £1,824,999 in 2025), demonstrating steady value accumulation even through economic disruptions including Brexit and COVID-19. Dividends of £16,000 were paid in the latest year, indicating sustainable cash generation.
Healthy Liquidity
Net current assets of £1,179,553 and a current ratio of approximately 122:1 provide exceptional liquidity coverage. Cash holdings increased from £119,960 to £261,100 year-on-year, suggesting positive cash flow generation. The reduction in amounts owed by participating interests (from £435,000 to £100,000) may indicate repayment of inter-company balances, further strengthening liquidity.
Regulatory Compliance
All filings are current—accounts made up to 31 January 2025 with no overdue status. The confirmation statement is also up to date. The company has maintained consistent filing over its 32-year history.
4. Due Diligence Notes
| Item | Investigation Required |
|---|---|
| Participating Interests | Identify the entities behind the £100,000 balance. Obtain terms, repayment schedules, and assess recoverability. Determine why this balance reduced from £435,000—was this genuine repayment or a write-off? |
| PSC Estate Position | Clarify the legal status of Alan Henry White's estate. Obtain probate details, understand the timeline for redistribution, and assess whether this creates any contingent liabilities or future ownership disputes. |
| Investment Property | The property increased by £199,123. Was this a new acquisition or a revaluation? What is the nature of this property (residential, commercial, land)? Is it income-producing? What rental yield does it generate? Independent valuation should be sought. |
| Trade Debtors Quality | At £753,978, trade debtors represent 41% of total assets. Age analysis, credit risk assessment, and concentration analysis are essential. Who are the major debtors and what is their creditworthiness? |
| Actual Business Activity | Reconcile the company name "Rapid Loans" with the SIC code and observed asset mix. Is the company still making loans? If so, where are the loan assets classified? If the business has pivoted to property investment, this changes the risk profile significantly. |
| Director Discrepancy | The officers list shows David Cedric Yannick EVINA SI as a current director, but the filed accounts were signed by Vicki White and Alexandra White. Clarify the current board composition and whether Mr. Evina Si is actively involved in management. |
| Profitability Trajectory | Obtain the profit and loss account (not filed under small company exemptions) to understand revenue trends, cost structure, and margin analysis. The £18,869 profit figure requires context—what revenue does this represent? |