RDA SYSTEMS LTD

Executive Summary

RDA Systems Ltd is a very early-stage company with negative net assets and limited liquidity, lacking trading history to support credit approval. The current financial position and cash flow constraints present significant credit risk. Careful monitoring of future financial performance and capital support is essential before reconsidering credit exposure.

RDA SYSTEMS LTD - Analysis Report

Company Number: 14934944

Analysis Date: 2025-07-29 16:04 UTC

1. Credit Opinion: DECLINE
   RDA Systems Ltd is a newly incorporated private limited company with less than one full year of trading history (incorporated June 2023, accounts to June 2024). The financials show negative net current assets (-£1,852) and net liabilities (-£839), indicating the company is currently insolvent on a balance sheet basis. Cash on hand is minimal (£1,404) relative to current liabilities (£3,256), highlighting liquidity concerns. The absence of turnover or profit/loss information limits assessment of operational viability. Directors are personally involved but have no prior credit or financial history disclosed. Given the weak financial position, lack of trading performance data, and small scale, the company does not currently demonstrate capacity to service debt or sustain credit facilities.

2. Financial Strength
   The balance sheet reveals a fragile financial structure with net liabilities of £839 and negative shareholders’ funds. Fixed assets are modest (£1,251 net book value), and there are no employees, indicating a micro enterprise at start-up phase. The company’s working capital is negative, which is a key weakness. The lack of retained earnings or reserves further weakens financial resilience. No audit was performed, and profit and loss details were not disclosed, limiting insight into profitability or revenue generation. Overall, the company’s financial strength is very limited.

3. Cash Flow Assessment
   Cash reserves are low at £1,404, insufficient to cover current liabilities of £3,256. Negative net current assets of £1,852 suggest the company may struggle to meet short-term obligations without additional funding or capital injection. No evidence of current revenues or operating cash inflows was presented, and the company recorded no employees, implying minimal operational activity so far. Without improving cash flow or raising funds, liquidity risk is high.

4. Monitoring Points

• Monitor future filed accounts for revenue growth, profitability, and cash flow improvements.
• Track liquidity ratios and working capital to ensure current liabilities remain manageable.
• Observe any capital injections or loans by shareholders to bolster financial position.
• Watch for timely filing of accounts and confirmation statements to avoid compliance risks.
• Assess any changes in director appointments or PSC control that might impact financial governance.