RDM RACETECH LTD

Executive Summary

RDM RACETECH LTD is a micro private limited company with a solid net asset position and improving working capital, reflecting sound short-term financial health. The company is early in its lifecycle but currently demonstrates capacity to meet debt obligations with minimal risk. Continued monitoring of operational cash flow and compliance filings is recommended to support ongoing creditworthiness.

RDM RACETECH LTD - Analysis Report

Company Number: 14501004

Analysis Date: 2025-07-29 13:03 UTC

1. Credit Opinion: APPROVE – RDM RACETECH LTD demonstrates a stable financial position for a micro-entity incorporated recently in late 2022. The company shows positive net assets of £14,461 as of November 2024 and an improving net current asset position, suggesting adequate short-term liquidity to meet obligations. The single director, who is also the sole significant controller, appears to maintain clear oversight. No adverse status such as overdue filings or insolvency proceedings are noted. Given the limited size and short operating history, credit approval should be on standard terms with monitoring.

2. Financial Strength: The balance sheet reflects a healthy equity base relative to asset size, with net assets growing from £12,051 in 2023 to £14,461 in 2024. Fixed assets are minimal (£1,294), typical for a service-oriented micro business. The increase in current assets (£31,995) outpaces the rise in current liabilities (£18,982), resulting in improved working capital (£13,732). The company’s capital structure is straightforward with shareholders’ funds fully covering net liabilities and no reported long-term debt, indicating low financial leverage.

3. Cash Flow Assessment: Current assets primarily comprise cash and receivables, sufficient to cover short-term liabilities by a factor of 1.68x (current ratio), implying good liquidity. The positive net current assets and absence of overdue creditors suggest the business manages its payables and receivables efficiently. However, the company’s small scale and limited turnover data (not provided) make cash flow volatility a potential risk. Monitoring actual cash generation from operations will be important as the business grows.

4. Monitoring Points:

• Verify future filing compliance and confirm no delays in accounts or confirmation statements.
• Track turnover and profitability once profit & loss figures become available to assess operational sustainability.
• Monitor changes in current liabilities and receivables to detect early signs of liquidity stress.
• Watch for any director changes or PSC updates that might affect governance or control.
• Assess impact of market conditions on the business sector (SIC 96090 – other service activities) and any dependency on key customers or contracts.