RCP VEHICLE SOLUTIONS LTD

Executive Summary

RCP Vehicle Solutions Ltd presents a growing and financially stable profile with improving net assets and liquidity, well-positioned to service credit facilities. The company benefits from strong management control and no adverse governance issues, supporting a positive credit recommendation. Continued monitoring of working capital components and profitability is advised to sustain creditworthiness.

RCP VEHICLE SOLUTIONS LTD - Analysis Report

Company Number: 13646210

Analysis Date: 2025-07-20 14:08 UTC

1. Credit Opinion: APPROVE. RCP Vehicle Solutions Ltd demonstrates a solid financial position with improving net assets and working capital, indicating a capacity to meet debt obligations. The company shows growth in assets and liquidity, supported by a principal director with full ownership and control, suggesting focused management. No adverse director conduct or overdue filings are noted, reducing governance risk.

2. Financial Strength: The company's net assets increased substantially from £37,156 in 2021 to £113,415 in 2024, reflecting retained earnings growth and asset accumulation. Fixed assets are modest but stable, mainly in plant, machinery, and vehicles, supporting operational capacity. The balance sheet shows healthy equity backed by consistent profit retention. Current liabilities remain roughly stable, while current assets and cash balances have increased, improving financial resilience.

3. Cash Flow Assessment: Cash at bank rose from £57,160 in 2021 to £93,490 in 2024, evidencing positive liquidity trends. Net current assets improved from a marginal £997 in 2021 to £59,611 in 2024, indicating strengthened working capital. Debtor levels have increased but remain manageable relative to cash. The company appears capable of covering short-term obligations without liquidity stress.

4. Monitoring Points:

• Monitor debtor aging to ensure timely cash conversion, given increased trade receivables.
• Watch inventory levels as stock increased; assess turnover efficiency.
• Review the impact of fixed asset additions on depreciation and cash flow.
• Track profitability trends as income statement details are not publicly filed.
• Maintain oversight of director’s ongoing management given sole control.