RCR (LONDON) LTD

Executive Summary

RCR (LONDON) LTD exhibits a robust financial position with strong liquidity and growing net assets, supporting its ability to meet credit obligations. Despite minimal staff, the company’s working capital and cash balances indicate sound financial stewardship. Approval of credit facilities is recommended with routine monitoring of receivables and cash flow trends.

RCR (LONDON) LTD - Analysis Report

Company Number: 13118637

Analysis Date: 2025-07-20 11:15 UTC

1. Credit Opinion: APPROVE
   RCR (LONDON) LTD demonstrates solid financial stability with growing net assets and shareholders’ funds, indicating retained earnings and capital accumulation. The company maintains a strong working capital position and low current liabilities relative to current assets, supporting its ability to meet short-term obligations. No adverse director conduct or filing issues are noted. While the company operates with zero employees, this may reflect a contractor-based model common in construction and does not inherently impair creditworthiness. Overall, the financial profile and operational status support approval for credit facilities, subject to standard monitoring.

2. Financial Strength:
   The balance sheet shows a healthy and improving net asset base, increasing from £39,246 in 2021 to £95,370 in 2024. Current assets at £104,538 comfortably cover current liabilities of £9,168, resulting in a strong net current asset position of £95,370. The company holds minimal fixed assets (not disclosed, likely negligible), relying primarily on current assets and working capital. The consistent increase in shareholders’ funds suggests profitability or capital injections, bolstering equity. The small share capital (£1) is typical for private limited companies and does not affect financial strength materially.

3. Cash Flow Assessment:
   Cash decreased from £109,294 in 2023 to £69,410 in 2024, but remains sufficient to cover short-term liabilities. The high ratio of current assets to current liabilities (over 11:1) indicates strong liquidity and working capital management. Debtors increased to £35,128, which should be monitored for collectability but currently do not pose an immediate risk. The absence of employees suggests low fixed overheads, which enhances cash flow stability. Overall, liquidity is strong, and the company appears capable of servicing debt and meeting operational cash requirements.

4. Monitoring Points:

• Debtor aging and collectability to ensure receivables convert to cash timely.
• Cash balances trends, especially if cash continues to decline, to confirm ongoing liquidity.
• Profitability metrics when full accounts with P&L are available, as current data only shows balance sheet figures.
• Any changes in operational scale or employee count, which could impact cost structure and cash flow.
• Maintain vigilance on timely filing of accounts and confirmation statements to avoid compliance risk.