RAPPORT FINANCE LIMITED

Executive Summary

Rapport Finance Limited shows significant solvency concerns highlighted by negative net assets and net current liabilities despite a positive cash balance. Its short operating history and lack of detailed financial disclosure introduce uncertainty regarding operational sustainability. While regulatory filings are up to date and governance appears stable, further investigation into revenue streams, creditor obligations, and management plans is essential to assess financial viability.

RAPPORT FINANCE LIMITED - Analysis Report

Company Number: 14209741

Analysis Date: 2025-07-29 17:41 UTC

1. Risk Rating: HIGH
   The company exhibits a negative net asset position and net current liabilities, indicating insolvency risk. The short operating history and lack of revenue disclosure further elevate the risk level.

2. Key Concerns:

• Negative Net Assets: As of 31 March 2024, shareholders’ funds stand at -£3,887, with net current liabilities of £3,887, suggesting that the company’s liabilities exceed its assets.
• Cash Position and Liquidity: Although cash reported is £21,000, current liabilities of nearly £25,000 imply potential short-term liquidity strain. No debtor balances or revenue figures are disclosed, raising concerns over sustainable cash inflows.
• Limited Operating History and Financial Transparency: Incorporated in July 2022, the company has only two years of financial data, with minimal detail on revenues or profitability. The absence of profit & loss account filing limits insight into operational performance.

3. Positive Indicators:

• Compliance with Filing: The company has filed accounts and confirmation statements on time with no overdue filings, demonstrating regulatory compliance.
• Small Company Reporting Exemption: The use of Total Exemption Full accounts and exemption from audit is consistent with its size and reduces administrative burden.
• Shareholder and Director Stability: Ownership and control are clearly defined with two directors/shareholders holding 25-50% stakes each, suggesting stable governance.

4. Due Diligence Notes:

• Investigate Revenue and Profitability: Request detailed management accounts or P&L statements to assess income generation and cost control.
• Clarify Nature of Creditors and Payment Terms: Analyze the composition and aging of the £24,887 current liabilities to evaluate immediate payment obligations and potential creditor pressure.
• Understand Business Model and Cash Flow Cycle: Gain clarity on how the company generates cash given the SIC code for miscellaneous business support services and the absence of debtors.
• Assess Directors’ Plans: Obtain insight into how directors intend to restore positive net assets and liquidity, including any planned capital injections or operational changes.
• Review Related Party Transactions: Given the shareholding structure and limited scale, check for any related party dealings that could affect financial health.