Company Number: SC729385

Analysis Date: 2025-07-29 16:37 UTC

1. Risk Rating: MEDIUM
   RCX Electrical Limited shows a modest net asset position but limited scale and no employees, indicating a nascent or small operation with potential liquidity constraints. The company is current on filings, but limited financial history and minimal operational data constrain a full risk assessment.

2. Key Concerns:

• Limited Operating History and Scale: Incorporated in 2022 with no reported employees, raising questions about operational capacity and revenue generation.
• Declining Current Assets: Current assets decreased significantly from £10,778 in 2023 to £3,233 in 2024, which may suggest cash flow tightening or asset depletion.
• Negative Current Liabilities Presentation in 2023: Unusual negative current liabilities figure (£-4,322) reported in 2023 requires clarification to understand true short-term obligations and working capital position.

3. Positive Indicators:

• Positive Net Current Assets and Net Assets: At 31 May 2024, net current assets and net assets stand at £2,576, indicating the company can cover its short-term liabilities.
• No Overdue Filings: Both accounts and confirmation statements are filed on time, demonstrating regulatory compliance and governance discipline.
• Single Controlling Director and Shareholder: Clear ownership structure with Mr. Rory Macleod Clark holding 75-100% shares and control, which can facilitate swift decision-making.

4. Due Diligence Notes:

• Investigate the nature and reason for negative current liabilities reported in 2023 and the reconciliation to current year figures.
• Verify the source of current assets and liquidity, particularly cash balances, to assess ongoing operational funding and sustainability.
• Clarify operational model given zero employees reported and confirm revenue streams, contracts, or trading activities supporting business viability.