RDR GROUP LTD

Executive Summary

RDR Group Ltd is a newly established company with positive but very limited equity and significant working capital deficits. While fixed asset growth shows investment commitment, liquidity is constrained and current liabilities are large compared to cash resources. Credit approval should be conditional on asset security or guarantees, with stringent cash flow monitoring to mitigate short-term liquidity risk.

RDR GROUP LTD - Analysis Report

Company Number: 14502248

Analysis Date: 2025-07-29 12:49 UTC

1. Credit Opinion: CONDITIONAL APPROVAL. RDR Group Ltd is a very young company incorporated in late 2022, operating in the real estate letting sector. The company has shown improvement from a negative net asset position in 2023 to a small positive equity in 2024 due to investment in tangible assets (leasehold property). However, it currently exhibits significant working capital deficits with current liabilities exceeding current assets by a large margin (£175,846 negative net current assets in 2024). The company’s ability to meet short-term obligations is weak, increasing credit risk. Approval may be considered for modest credit facilities if secured against the tangible leasehold property or if supported by personal guarantees, subject to close cash flow monitoring.

2. Financial Strength: The balance sheet shows fixed assets (leasehold property) growing from approximately £120.9k to £182.9k, indicating capital investment. Total assets less current liabilities improved from a deficit of £4.5k to a positive £7.0k. The company’s equity position has turned positive (£7.0k), reflecting retained profits or revaluation gains, but remains very thin relative to current liabilities. The significant current liabilities (£179.8k) mostly relate to other creditors and corporation tax, which suggests high short-term obligations. The minimal share capital (£20) indicates limited equity buffer. Overall, financial strength is fragile and heavily reliant on continued investment or cash inflows.

3. Cash Flow Assessment: Cash at bank increased slightly to £3,534 but remains very low compared to current liabilities of £179,780, signaling liquidity pressure. Debtors are minimal (£400) and decreasing, further limiting working capital support. Negative net current assets imply the company may not have sufficient liquid resources to cover near-term payables without additional funding or asset liquidation. The directors’ statement on going concern is noted, but from a credit perspective, liquidity risk is high. Close scrutiny of cash flow forecasts and payment plans is essential.

4. Monitoring Points:

• Regular monitoring of liquidity ratios, especially current ratio and quick ratio.
• Watch creditor payment performance and any build-up of overdue payables.
• Track cash flow statements and bank balances monthly.
• Monitor any changes in leasehold property valuation or disposal plans.
• Review any additional capital injections or guarantee arrangements.
• Observe corporation tax payment status and any tax-related liabilities.