RDW CARPENTRY LTD

Executive Summary

RDW Carpentry Ltd, a recently incorporated micro-entity in the carpentry manufacturing sector, demonstrates significant solvency and liquidity weaknesses with negative working capital and shareholders’ funds in its first accounts. While regulatory compliance is current and the director has relevant industry expertise, the company’s financial position poses a high risk to investors until operational profitability and cash flow improve. Further investigation into liabilities and business prospects is recommended to better assess sustainability.

RDW CARPENTRY LTD - Analysis Report

Company Number: 14471859

Analysis Date: 2025-07-20 14:59 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns with net current liabilities of £14,655 and negative shareholders’ funds of £51 within its first full financial year. This indicates that the business is currently unable to cover its short-term liabilities with its current assets.

2. Key Concerns:

• Negative Working Capital: Current liabilities (£20,726) substantially exceed current assets (£6,071), signaling cash flow and liquidity stress.
• Negative Equity: Shareholders’ funds are slightly negative, suggesting the company’s net asset position is under water, which may limit borrowing ability and investor confidence.
• Early Stage Financials: Incorporated in late 2022, the company has limited operating history and its initial financials show losses or capital erosion, increasing uncertainty about operational sustainability.

3. Positive Indicators:

• No Overdue Filings: The company is compliant with statutory filing deadlines for accounts and confirmation statements, reflecting good regulatory adherence.
• Director Experience: The sole director’s occupation as a carpenter indicates relevant industry knowledge, which may support future operational stability.
• Micro-Entity Status: Operating as a micro entity, the company has minimal compliance burden which may reduce administrative costs during early development.

4. Due Diligence Notes:

• Investigate the nature and timing of current liabilities to assess if they are trade payables, loans, or other obligations and understand repayment risks.
• Review cash flow statements or management accounts (if available) for evidence of cash generation or reliance on external funding.
• Assess future business plans, contracts or pipeline to evaluate potential for revenue growth and turnaround of negative net assets.
• Confirm no director disqualifications or regulatory actions beyond the public record provided.
• Consider the impact of sole ownership and control on governance and decision-making risk.