RDIX LIMITED
Executive Summary
RDIX LIMITED is a very small, micro-sized transport company with limited financial resources but positive net assets and working capital. While it currently meets short-term obligations, its narrow liquidity margin and modest scale pose some risk. Conditional credit approval is recommended with close attention to cash flow and operational performance going forward.
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This analysis is opinion only and should not be interpreted as financial advice.
RDIX LIMITED - Analysis Report
Credit Opinion: CONDITIONAL APPROVAL
RDIX LIMITED is a micro-sized private limited company operating as an unlicensed carrier. The company shows modest net current assets and positive equity, indicating a basic ability to meet short-term liabilities. However, the scale of operations is very small, with limited financial buffer and only one employee, which increases risk. The director's occupation as a delivery driver suggests a hands-on management style but limited corporate financial expertise. Given these factors, credit approval should be conditional on close monitoring and potentially limiting exposure to small amounts only.Financial Strength:
- Net assets have increased from £222 in 2022 to £535 in 2023, reflecting slight growth in retained earnings.
- Shareholders’ funds remain minimal at £535, which aligns with the micro company profile.
- Net current assets are positive but low (£535 in 2023), showing a narrow margin above current liabilities.
- No fixed assets or significant capital investment is reported, indicating limited asset backing.
Overall, the balance sheet is stable but very modest in size and strength.
- Cash Flow Assessment:
- Current assets primarily consist of debtors (£7,962) nearly equal to current liabilities (£7,427), resulting in a net working capital of £535.
- The company’s liquidity position is adequate but tight; it relies heavily on timely collection of receivables to cover short-term obligations.
- No cash or bank balances are explicitly stated, which is a potential liquidity concern.
- The small scale and limited financial reserves suggest vulnerability to any delays in payment or unexpected expenses.
- Monitoring Points:
- Monitor debtor days and collection efficiency closely to ensure liquidity is maintained.
- Watch current liabilities for any material increases that could strain working capital.
- Track profitability and retained earnings growth to gauge financial trajectory.
- Review director’s involvement and financial management practices for signs of strengthening governance.
- Ensure timely filing of accounts and confirmation statements to maintain compliance and transparency.
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