Company Number: 13554922

Analysis Date: 2025-07-19 12:44 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Real Civil Engineer Ltd demonstrates a solid liquidity position and positive net assets, indicating the capacity to meet short-term obligations. However, there is a notable decline in current assets and net assets from 2023 to 2024, suggesting some financial contraction. The company is relatively young (incorporated 2021), with a small workforce and business focused on video production activities, which may carry some sector-specific risks. The director and controlling shareholder are aligned, and there are no indications of adverse director conduct. Credit approval is recommended with monitoring of the company’s ability to stabilize or grow its asset base and maintain cash flow.

2. Financial Strength:
   The company’s net assets decreased from £2.17M in 2023 to £0.90M in 2024, a significant reduction largely driven by a drop in current assets, especially cash (from £1.72M to £0.77M) and debtors. Fixed assets are minimal (£7.5k) and declining. Current liabilities have decreased to £18k, maintaining a strong working capital position (£896k). Overall, the balance sheet remains healthy with equity comfortably exceeding liabilities, but the downward trend in net assets warrants caution.

3. Cash Flow Assessment:
   Cash at bank remains strong at £772k, providing ample liquidity relative to current liabilities of £18k. Debtors have reduced significantly, improving cash conversion risk. The company’s net current assets of £896k indicate robust short-term financial health. However, the sharp decline in cash and current assets year-on-year signals a need to review operational cash flow sustainability and ensure working capital is managed prudently.

4. Monitoring Points:

• Track cash balances and debtor turnover closely to ensure liquidity remains sufficient for operational needs.
• Watch for any further decline in net assets or increased liabilities which may signal financial stress.
• Review business revenue trends and profitability (not disclosed in detail) to assess ongoing viability.
• Monitor director’s management actions and any changes in ownership/control.
• Ensure timely submission of future filings and compliance with regulatory requirements.