RDM CNC LTD

Executive Summary

RDM CNC LTD has shown a significant financial turnaround with positive net assets and improved liquidity in the latest fiscal year, supporting a conditional approval for credit. Despite this progress, the company’s micro size and limited operating history warrant careful ongoing monitoring of cash flow and working capital. Continued financial discipline and growth are essential to support expanding credit facilities.

RDM CNC LTD - Analysis Report

Company Number: 12762156

Analysis Date: 2025-07-29 20:08 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   RDM CNC LTD has demonstrated a marked improvement in its financial position in the most recent year, turning from a net liability position to a positive net asset and working capital position. However, as a micro-entity with a limited financial history since incorporation in 2020, the company remains relatively small and exposed to operational risks typical for its scale and industry. The turnaround from negative to positive net current assets and net assets is encouraging, but the company should be monitored for continued stability and consistent cash flow generation before increasing credit limits.

2. Financial Strength:
   The company’s net assets increased from £3,166 in 2023 to £13,415 in 2024, primarily driven by improved working capital (net current assets moved from negative £7,341 to positive £5,424). Fixed assets decreased slightly but remain modest at £8,646. The balance sheet strength is in its improved liquidity and reduced short-term liabilities (£5,344 in 2024 vs £13,459 in 2023). The equity base, although still small, is positive and growing, reflecting improved financial stewardship and operational control.

3. Cash Flow Assessment:
   RDM CNC LTD’s current assets (cash, receivables, stock) exceed current liabilities, indicating adequate short-term liquidity to meet obligations as they fall due. The reversal from a working capital deficit to a surplus is a positive sign of improved cash conversion and management of payables and receivables. However, the micro-entity size and limited employee base (1 employee) suggest cash flow could be vulnerable to operational disruptions or unexpected expenses. Close attention to cash flow forecasts and debtor collections is recommended.

4. Monitoring Points:

• Continue to track net current assets to ensure working capital remains positive and sufficient for operational needs.
• Monitor accounts payable and receivable aging for signs of payment delays or collection issues.
• Watch for any changes in fixed asset investment that could strain liquidity.
• Review management actions and strategic plans as disclosed in future filings for sustained profitability and cash flow improvements.
• Keep an eye on any director changes or PSC updates which could impact governance.