RB EMPIRE LTD

Executive Summary

RB Empire Ltd is facing high financial risk primarily due to significant liquidity shortfalls and heavy mortgage debt relative to minimal equity. Although the company holds valuable tangible assets and maintains regulatory compliance, the current financial structure poses solvency concerns. Further due diligence on cash flow, debt terms, and asset quality is essential to assess ongoing viability.

RB EMPIRE LTD - Analysis Report

Company Number: 13109091

Analysis Date: 2025-07-20 18:15 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits significant liquidity challenges with current liabilities far exceeding current assets, resulting in large net current liabilities. The presence of substantial long-term debt (mortgage) on the balance sheet further increases solvency risk given the minimal equity base. The company’s net assets are barely positive, indicating a fragile financial position.

2. Key Concerns:

• Liquidity Mismatch: Current liabilities (£144,645) exceed current assets (£25,584) by a wide margin, indicating potential difficulty in meeting short-term obligations.
• High Long-Term Debt: A mortgage liability of £327,045 creates a heavy leverage burden relative to shareholders’ funds of only £1,082.
• Minimal Equity and Reserves: Shareholders’ funds are nominal, showing limited buffer to absorb losses or finance operations, raising questions about the company’s ability to sustain operations if cash flow weakens.

3. Positive Indicators:

• Tangible Fixed Assets: Ownership of a freehold property valued at £447,188 provides a substantial asset base which can support borrowing and potentially be leveraged or sold if needed.
• No Filing Delinquencies: Accounts and confirmation statement filings are up to date, indicating good regulatory compliance and governance.
• Stable Management: Directors have been in place since incorporation with no negative indicators such as disqualifications reported.

4. Due Diligence Notes:

• Investigate the terms and repayment schedule of the mortgage and other creditors to assess refinancing risk or potential for default.
• Review cash flow statements and underlying operational cash generation to understand the company’s ability to service short-term and long-term liabilities.
• Confirm the valuation and marketability of the freehold property and whether it is encumbered beyond the mortgage shown.
• Assess the company’s revenue streams and profitability trends since no income statement was provided; this is critical to gauge operational sustainability.
• Understand the relationship between the directors and any related party transactions, given the small share capital and close director involvement.