RC TRADITIONAL METALS LTD

Executive Summary

RC Traditional Metals Ltd is a micro-entity in the early growth phase with positive net current assets and timely statutory filings. While the balance sheet shows limited equity and fixed assets, current liquidity appears sufficient to meet short-term liabilities. Credit approval is recommended on a conditional basis pending receipt of updated trading and cash flow information to mitigate inherent start-up risks.

RC TRADITIONAL METALS LTD - Analysis Report

Company Number: 14615803

Analysis Date: 2025-07-29 18:39 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   RC Traditional Metals Ltd is a newly incorporated micro-entity, active and filing accounts on time, which is positive. The company shows modest net assets (£4,295) and positive net current assets (£16,070), indicating some short-term liquidity. However, the business is very young (incorporated in 2023) with limited financial history and fixed assets of only £540. The director holds full control, which suggests strong management continuity but also increases exposure to key person risk. Given limited financial data and no profit and loss information available, credit approval should be conditional on obtaining updated trading performance reports and monitoring cash flow closely.

2. Financial Strength:
   The balance sheet shows total assets less current liabilities at £16,610 and net assets of £4,295, reflecting a thin equity base typical for a start-up micro company. Current liabilities of £56,397 are covered by current assets of £62,797, resulting in net current assets (working capital) of £16,070. Accruals and deferred income (£12,315) reduce net assets, indicating some unearned income or liabilities to be settled. Overall, the company has a positive working capital position but limited fixed assets and equity, reflecting early-stage investment and growth phase.

3. Cash Flow Assessment:
   Current assets include £62,797 which likely comprises cash and short-term receivables. Current liabilities of £56,397 are manageable given the positive net current assets. The company reports an average of 4 employees, indicating a small operating scale. Absence of profit and loss data limits assessment of operating cash flow generation; however, positive working capital and timely filings suggest the company can meet short-term obligations. Continued monitoring of cash inflows and outflows is essential.

4. Monitoring Points:

• Obtain periodic management accounts and cash flow forecasts to assess ongoing liquidity and profitability.
• Monitor receivables ageing and creditor payment terms to avoid cash flow strain.
• Watch for changes in director or shareholder structure, as sole control by one director presents concentration risk.
• Keep track of industry conditions in roofing activities (SIC 43910), particularly any supply chain or demand fluctuations that may impact revenue.
• Ensure continued timely filing of accounts and confirmation statements.