REBASE GROUP LTD

Executive Summary

Rebase Group Ltd is an active private limited company engaged in real estate letting with a modest but weakened financial position as of March 2024. It maintains positive net assets and liquidity, but with a significantly reduced equity base and tight working capital, it presents medium credit risk. Credit should be extended with caution, subject to ongoing cash flow and receivables monitoring to mitigate potential liquidity pressures.

REBASE GROUP LTD - Analysis Report

Company Number: 13016792

Analysis Date: 2025-07-29 17:23 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Rebase Group Ltd demonstrates ongoing operations with a modest but declining net asset base and working capital position. The company has positive net assets (£2,406) and a current asset base exceeding current liabilities by a small margin (£6,535 net current assets), indicating it can meet short-term obligations, but the sharp reduction in net assets from prior years signals financial stress. The company’s business is in real estate letting and operating, a sector sensitive to economic cycles, so caution is warranted. Lending could be considered with conditions such as close monitoring of receivables and liabilities, and possibly secured arrangements given the diminished equity cushion and reduced liquidity compared to prior years.

2. Financial Strength:
   The balance sheet shows total fixed assets of £4,133 and current assets of £484,335, primarily driven by trade debtors (£258,611) and cash (£177,020). However, current liabilities have increased to £477,800, narrowing the net current asset margin to just £6,535, a significant decline from £64,756 the previous year. Total net assets have reduced drastically from £52,660 in 2023 to £2,406 in 2024, largely due to increased liabilities and reduced retained earnings. Long-term liabilities have also decreased but remain present (£6,167). The low equity base limits the company’s capacity to absorb financial shocks.

3. Cash Flow Assessment:
   Cash at bank increased from £137,293 to £177,020, which is positive for liquidity. However, the high level of trade debtors (£258,611) and accrued income (£48,704) may indicate some credit risk and potential delays in cash conversion. The sizeable increase in taxation and social security creditors (£238,823) and related party payables (£99,739) suggests cash outflows may be pressured in the near term. The company’s working capital is marginally positive, but the tight spread between current assets and liabilities indicates limited short-term liquidity flexibility. Close attention to debtor collection and creditor payment terms is critical.

4. Monitoring Points:

• Trade debtor aging and collection efficiency: monitor for increasing bad debts or slow payments.
• Taxation and social security liabilities: ensure timely settlement to avoid penalties.
• Profitability trends: review future profit and loss data when available to confirm recovery or further deterioration.
• Cash flow forecasts and liquidity ratios to detect any emerging liquidity constraints.
• Any increase in borrowing or related party payables which could impact financial stability.
• Changes in occupancy or lease agreements in the real estate segment impacting revenues.