RD CONSULTING LTD

Executive Summary

RD Consulting Ltd is a very small, newly established IT consultancy with minimal financial resources reflected by a micro-entity balance sheet showing net assets of just £508. The company has limited working capital and no significant financial cushion, posing moderate risk for lending. Credit approval is possible but should be conditional on evidence of operational growth and enhanced liquidity or secured guarantees.

RD CONSULTING LTD - Analysis Report

Company Number: 14500805

Analysis Date: 2025-07-29 12:33 UTC

1. Credit Opinion: CONDITIONAL APPROVAL RD Consulting Ltd is a newly incorporated micro private limited company operating in the IT consultancy sector. The company shows a positive net asset position but with minimal equity (£508) and very limited working capital. Given the nascent stage (less than two years old) and very small scale, the company’s ability to service debt depends heavily on future revenue generation and cash flow improvements. Credit approval can be considered but should be conditional on obtaining updated financials demonstrating growth or secured personal guarantees due to limited financial buffer and operating history.

2. Financial Strength: The balance sheet is extremely modest: current assets of £10,535 against almost equal current liabilities of £10,027, leaving net current assets (working capital) of only £508. Total net assets equal £508, reflecting very low capitalization and equity. There are no fixed assets or long-term investments reported. The company falls within the micro-entity category, filing under simplified accounting standards (FRS 105). The small scale and minimal equity indicate limited financial strength and vulnerability to cash flow shocks.

3. Cash Flow Assessment: Current assets are primarily likely to be cash and receivables, but the close match to current liabilities indicates tight liquidity. The company’s working capital is very thin, suggesting minimal buffer to absorb delays in payments or unexpected expenses. With an average of 2 employees, payroll obligations may constitute a significant portion of outgoings relative to asset size. No profit and loss data is provided, but the absence of an audit and micro-entity filing exemptions imply limited disclosure. Cash flow monitoring and short-term liquidity are critical considerations.

4. Monitoring Points:

• Future trading performance and revenue growth to build equity and strengthen net assets.
• Timely filing of subsequent accounts and confirmation statements to maintain compliance.
• Liquidity ratios, particularly current ratio and quick ratio, to track working capital adequacy.
• Any material changes in liabilities or introduction of long-term debt.
• Director’s conduct and governance practices, especially given sole director and owner control.
• Potential personal guarantees or collateral offered for credit facilities.