RDK MANAGEMENT LIMITED

Executive Summary

RDK Management Limited exhibits a weak credit profile characterized by negative equity, significant long-term debt, and poor liquidity. The company’s limited cash resources and working capital deficit raise concerns about its ability to meet short-term obligations. Without operational revenues or improvements in financial structure, approval for additional credit facilities is not recommended at this stage.

RDK MANAGEMENT LIMITED - Analysis Report

Company Number: 13272128

Analysis Date: 2025-07-20 18:56 UTC

1. Credit Opinion: DECLINE
   RDK Management Limited shows a weak credit profile primarily due to persistent net liabilities and negative working capital. The company’s balance sheet reveals net current liabilities of £160k against minimal current assets, indicating liquidity stress. Additionally, despite holding fixed assets (investment property valued at £492,885), the company carries significant long-term debt (£347k) and overall negative shareholders' funds (£14k). The lack of turnover information and absence of employees suggest limited operational activity or revenue generation, raising doubts about the company's ability to service its debt obligations timely.

2. Financial Strength:
   The company’s financial position is fragile. While it owns investment properties valued at nearly £493k, this asset base is offset by substantial liabilities—both current and long-term. The net asset position has deteriorated from -£1,622 in 2023 to -£14,205 in 2024, driven by increasing losses or accumulation of deficits in the profit and loss account. Share capital is nominal (£3), providing little equity buffer. The continued negative equity position signals erosion of financial strength and potential solvency concerns.

3. Cash Flow Assessment:
   Liquidity is severely constrained. Cash on hand remains minimal (£2,276 in 2024), insufficient to cover current liabilities of £162k. Net current liabilities of £160k represent a working capital deficit, indicating the company may struggle to meet short-term obligations without additional financing or asset disposals. The absence of trade debtors or other current assets further limits cash inflows. There is no evidence of positive operating cash flow or turnover to support liquidity requirements.

4. Monitoring Points:

• Track changes in net current assets and cash balances to assess improvements in liquidity.
• Monitor any material changes in investment property valuations impacting asset coverage.
• Review any new debt arrangements or repayments impacting leverage.
• Observe filing of future accounts, especially turnover and profit figures, to evaluate operational performance and cash generation.
• Watch for director or shareholder interventions to recapitalize the company or restructure liabilities.