RCS PROP1 MANAGEMENT LIMITED

Executive Summary

RCS PROP1 MANAGEMENT LIMITED displays weak financial health with significant leverage and negative net assets as of January 2024. The company’s liquidity and operational cash flows appear constrained, and it lacks an equity buffer to absorb shocks. Given these factors and limited trading history, credit facilities are not recommended at this time without substantial improvement in financial position and cash flow generation.

RCS PROP1 MANAGEMENT LIMITED - Analysis Report

Company Number: 12785246

Analysis Date: 2025-07-29 16:26 UTC

1. Credit Opinion:
   DECLINE. The company shows a negative net asset position and net liabilities of £59,253 as of the latest accounts. The high level of long-term creditors (£1.54m) compared to fixed assets (£1.54m) and current liabilities suggests the company is highly leveraged. The absence of employees and limited trading history since incorporation in 2020 further raise concerns about operational viability and cash generation capacity. The current directors are relatively new, and there is no evidence of significant profitability or cash flow generation to support debt service.

2. Financial Strength:
   The balance sheet indicates total fixed assets of approximately £1.54m, matched closely by long-term creditors of £1.54m, leaving no equity buffer. Current assets improved markedly from £16k to £349k year-on-year, but current liabilities remain high at £404k, resulting in negative net current assets of £55k. Shareholder funds are negative, reflecting accumulated losses or funding through debt rather than equity. This financial structure signals weak solvency and limited financial flexibility.

3. Cash Flow Assessment:
   No employees and limited current assets relative to current liabilities indicate constrained liquidity. The rise in current assets suggests some improvement but is insufficient to cover short-term obligations fully. The micro-entity accounts do not disclose cash flow statements or profit & loss details, but the negative net assets and high creditor balances point to strained working capital and uncertain cash flow from operations.

4. Monitoring Points:

• Watch for improvements in net current assets and reduction of short-term liabilities to improve liquidity.
• Monitor changes in creditor structure, especially any refinancing of long-term debt.
• Review future trading results and cash flows for evidence of profitability or operational cash generation.
• Assess director stability and any changes in ownership/control that might affect financial strategy.