RDP HEALTH CARE GROUP LTD

Executive Summary

RDP HEALTH CARE GROUP LTD displays severe financial weakness with negative net assets, poor liquidity, and increasing liabilities, posing a high credit risk. The company currently lacks the financial capacity to meet its obligations or service debt, leading to a credit recommendation to decline. Ongoing monitoring of cash flow and any remedial measures by management is essential for future reassessment.

RDP HEALTH CARE GROUP LTD - Analysis Report

Company Number: 13485018

Analysis Date: 2025-07-20 11:42 UTC

1. Credit Opinion: DECLINE
   RDP HEALTH CARE GROUP LTD shows significant financial distress with persistent and increasing net liabilities, deteriorating working capital, and negative shareholders' funds. The company’s net assets worsened from -£43k at inception to -£269k in the latest period, with current liabilities far exceeding current assets, indicating poor short-term liquidity and an inability to meet immediate obligations. The absence of positive cash flow and working capital deficits raise serious concerns over the company’s ability to service debt or sustain operations without external support. Given the magnitude of the net liability position and negative equity, the risk of default is high.

2. Financial Strength:
   The balance sheet reveals weak financial health. Fixed assets are modest (£188k) and declining compared to previous periods. Current assets are minimal (£890), mainly cash, while current liabilities stand at £287k, resulting in a net current liability position of -£171k. Moreover, long-term liabilities have increased substantially to £287k, further eroding net assets. The company operates with significant negative equity, signaling accumulated losses and potentially limited capacity to raise further equity without dilution or external intervention.

3. Cash Flow Assessment:
   Cash balances have declined sharply to under £1,000, with no indication of other liquid assets or receivables to bolster liquidity. The working capital deficit is substantial and growing, reflecting an inability to cover short-term debts from current assets. This situation suggests the company has insufficient operational cash flow to meet ongoing liabilities and may depend on director loans or external funding to continue. The lack of positive cash reserves presents a risk to creditors.

4. Monitoring Points:

• Monitor cash flow trends and liquidity improvements, if any, especially any injections of capital or credit facilities.
• Watch for improvements in net current assets and reduction in current liabilities.
• Track profitability and any turnaround in retained earnings to reduce net liabilities.
• Observe directors’ actions regarding restructuring, refinancing, or seeking external funding.
• Review upcoming filings for any signs of administration, liquidation, or other distress signals.