RC ENERGY SOLUTIONS LTD

Executive Summary

RC Energy Solutions Ltd is a recently incorporated micro-entity showing growth in net assets but currently exhibits negative working capital and significant long-term liabilities, indicating moderate liquidity and solvency risks. The company maintains good regulatory compliance and benefits from focused ownership but remains operationally unproven due to its short history and small scale. Further cash flow analysis and creditor review are recommended to clarify financial stability.

RC ENERGY SOLUTIONS LTD - Analysis Report

Company Number: 13871791

Analysis Date: 2025-07-20 13:30 UTC

1. Risk Rating: MEDIUM
   RC Energy Solutions Ltd shows growth in net assets and fixed assets over its short operating history, which is a positive sign. However, persistent net current liabilities and the presence of long-term creditors indicate potential liquidity and solvency pressure that warrant caution.

2. Key Concerns:

• Negative Net Current Assets: The company has net current liabilities of £7,361 as of January 2024, worsening from £344 the previous year. This suggests potential short-term liquidity strain.
• Long-Term Creditors: £26,703 is owed beyond one year, which is significant relative to the company’s size and equity of £42,585, potentially affecting long-term solvency.
• Limited Operational History and Scale: Incorporated in 2022 with micro-entity status and only two employees, the company’s operational stability and ability to withstand market shocks are unproven.

3. Positive Indicators:

• Increasing Net Assets: Equity grew from £306 in 2023 to £42,585 in 2024, indicating successful capital injection or profitability.
• No Overdue Filings: Accounts and confirmation statements are up to date, reflecting good regulatory compliance.
• Single Controlling Director with Relevant Experience: The sole director, Ben Joseph Richardson, has a relevant occupation (Retrofit Coordinator), suggesting domain expertise and aligned management control.

4. Due Diligence Notes:

• Verify the nature and terms of the long-term creditors to assess repayment risk and funding structure.
• Review cash flow statements (not provided) to evaluate actual liquidity and operational cash generation.
• Investigate customer base and contract stability given the company’s young age and small size.
• Confirm absence of director disqualifications or adverse conduct records beyond the provided data.
• Assess any contingent liabilities or off-balance sheet obligations not disclosed in the micro-entity accounts.