RCH 17 INVESTMENTS LTD

Executive Summary

RCH 17 Investments Ltd presents a moderate risk profile characterized by limited liquidity and a highly leveraged asset base. While compliance and governance appear sound, financial stability depends on the management of significant long-term liabilities against tangible assets. Further inquiry into cash flow dynamics and liability structure is necessary to fully assess operational sustainability and solvency.

RCH 17 INVESTMENTS LTD - Analysis Report

Company Number: 14114774

Analysis Date: 2025-07-20 14:51 UTC

1. Risk Rating: MEDIUM
   The company shows a marginal net asset position with a very small positive net asset value (£867) and minimal cash balances (£240). It operates within the real estate management sector but holds significant liabilities due after one year (£93,173) closely matching its fixed assets. The financials suggest limited liquidity and potential solvency concerns, though there is no indication of overdue filings or immediate regulatory issues.

2. Key Concerns:

• Liquidity Risk: Cash on hand is very low (£240), raising concerns about the company’s ability to meet short-term obligations despite a small positive net current asset position of £858.
• Solvency Risk: Large long-term liabilities (£93,173) nearly equal the fixed asset base (£93,182), indicating the company may be highly leveraged against its tangible assets.
• Operational Scale and Sustainability: The company has no employees other than directors and minimal current assets/debtors, suggesting very limited operational activity and potential dependency on external funding or related parties.

3. Positive Indicators:

• Timely Compliance: All statutory filings are up to date, with no overdue accounts or confirmation statements, indicating sound governance and regulatory compliance.
• Stable Ownership and Control: Directors and persons with significant control are consistent, with no indications of director disqualifications or changes suggesting governance stability.
• Asset Base: The company holds tangible fixed assets valued consistently over the last three years, which provides some collateral value backing liabilities.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term liabilities to assess repayment schedules, interest obligations, and associated risks.
• Review cash flow statements and bank reconciliations (if available) to understand liquidity management and sources of working capital.
• Clarify the operational model given no employees and limited turnover disclosure to assess business sustainability and revenue generation.
• Confirm whether the fixed assets are readily marketable and their current valuation to understand asset liquidity in distress scenarios.
• Examine related party transactions or financing arrangements, given the directors’ dual ownership and potential for intra-group support or reliance.