REDFOOT DEVELOPMENTS LTD

Executive Summary

Redfoot Developments Ltd is a recently incorporated construction company facing immediate solvency and liquidity challenges, as evidenced by negative net assets and significant current liabilities relative to cash and receivables. While regulatory compliance is satisfactory and the presence of tangible stock assets is positive, the company’s financial position raises high risk concerns for investors. Further due diligence on debt terms, asset quality, and business sustainability is recommended to clarify outlook.

REDFOOT DEVELOPMENTS LTD - Analysis Report

Company Number: 14811327

Analysis Date: 2025-07-29 12:56 UTC

1. Risk Rating: HIGH
   The company exhibits a negative net asset position and net current liabilities despite a recent incorporation date, indicating immediate solvency risks. The large amount of short-term debt relative to minimal cash and receivables raises liquidity concerns, especially for a new entity with limited trading history.

2. Key Concerns:

• Negative shareholders’ funds of £15,140 with net current liabilities of the same amount suggest the company is technically insolvent at the balance sheet date.
• Current liabilities of £887,348 heavily outweigh current assets (£872,208), with cash on hand very low at £3,582, posing significant liquidity risk.
• The company is recently incorporated (April 2023) with limited operational history, which increases uncertainty regarding business sustainability and ability to generate cash flow to meet obligations.

3. Positive Indicators:

• Compliance with filing deadlines is current, indicating good regulatory adherence to statutory requirements.
• Directors are clearly identified with significant control, suggesting stable governance structure.
• The company operates in construction of domestic buildings and development of building projects, sectors that can generate tangible assets (stocks valued at £868,431), potentially supporting future operations.

4. Due Diligence Notes:

• Investigate the nature and terms of the £885,350 bank loans and overdrafts to understand repayment schedules and refinancing risk.
• Assess the quality and realizability of stock valued at £868,431, including any encumbrances or liens.
• Review the company’s business model and contracts to evaluate forecasted cash flows and operational viability.
• Confirm absence of director disqualifications or governance issues beyond publicly available information.
• Examine any related party transactions, particularly director advances which show a credit balance for one director.