RBL PROPERTY LTD

Executive Summary

RBL PROPERTY LTD is currently in a financially distressed position with negative equity and persistent liquidity shortfalls. The decline in investment property value and high leverage compromise its ability to meet debt obligations. Without material operational improvement or capital support, the company poses a high credit risk and is not recommended for credit extension at this time.

RBL PROPERTY LTD - Analysis Report

Company Number: 14253090

Analysis Date: 2025-07-20 14:09 UTC

1. Credit Opinion: DECLINE
   RBL PROPERTY LTD exhibits a weak financial position with net liabilities of £16,099 as of the latest accounts (31 July 2024), a significant deterioration from net assets of £2,851 the prior year. The company has persistent negative working capital, with current liabilities (£95,632) exceeding current assets (£65,920) by £29,712, reflecting liquidity stress. The investment property value declined by £15,000 in the latest year, indicating potential impairment and asset value erosion. The secured bank loans (£91,387) remain substantial relative to assets, and the company’s equity position is negative, raising concern about solvency. Given these factors, the company’s ability to service debt and meet commercial obligations is questionable without additional capital or improved cash flows.

2. Financial Strength:
   The balance sheet shows a decline in total assets less current liabilities from £94,871 in 2023 to £75,288 in 2024, driven mainly by a £15,000 revaluation loss and impairment on investment property. Shareholders’ funds have turned negative due to accumulated fair value losses and retained losses. The company is highly leveraged, with secured bank loans almost equal to total assets. The negative equity position indicates the company is technically insolvent on a balance sheet basis. The investment property, the main asset, is subject to market valuation risk and is illiquid. Overall, the financial strength is weak.

3. Cash Flow Assessment:
   Cash balances remain modest (£62,084), but the company’s current liabilities exceed current assets, indicating ongoing working capital pressure. Debtors are minimal (£3,836), so cash inflow from receivables is limited. The company relies heavily on bank debt (£91,387) secured against its property assets. The negative net current assets suggest the company may struggle to cover short-term obligations without refinancing or additional capital injection. No evidence of significant operating cash flow or profitability is provided, suggesting limited internal cash generation. Liquidity is constrained.

4. Monitoring Points:

• Track changes in investment property valuation and any further impairments or revaluations.
• Monitor cash flow statements and operating profit levels to assess ability to service interest and debt repayments.
• Keep watch on working capital trends and whether current liabilities continue to exceed current assets.
• Assess any capital injections or restructuring efforts to improve solvency and liquidity.
• Review compliance with loan covenants and potential risks of default or enforcement actions by lenders.
• Monitor director actions and any changes in ownership or control structure that could affect financial stability.