REDGATE SPECIALIST FINANCE LIMITED

Executive Summary

Redgate Specialist Finance Limited exhibits a low risk profile based on its strong liquidity, growing net assets, and compliance with statutory filing requirements. However, the significant related party transactions and increased tax liabilities warrant further scrutiny to ensure ongoing operational and financial stability. Given its recent establishment, continued monitoring of business performance is recommended to confirm sustainable growth.

REDGATE SPECIALIST FINANCE LIMITED - Analysis Report

Company Number: 14457414

Analysis Date: 2025-07-20 14:01 UTC

1. Risk Rating: LOW
   Redgate Specialist Finance Limited demonstrates a solid financial position with positive net current assets and net assets that have increased year-on-year since incorporation. The company is solvent with adequate liquidity evidenced by a strong cash balance relative to current liabilities. Compliance with filing deadlines and no indication of governance issues further support a low risk rating.

2. Key Concerns:

• Related Party Transactions: Significant commissions (£566k in 2025) paid to related undertakings holding participating interests could present conflicts of interest or dependency risk.
• Taxation and Social Security Creditors: A notable increase in these liabilities (£49k in 2025 from £25k in 2024) warrants monitoring for any potential cash flow strains or tax disputes.
• Limited Operational History: Incorporated in late 2022, the company has limited historical performance data, which restricts assessment of long-term operational stability.

3. Positive Indicators:

• Strong Liquidity Position: Cash at bank (£157k) comfortably covers current liabilities (£56k), indicating good short-term financial health.
• Growing Net Assets: Net assets rose from £75k in 2024 to £115k in 2025, reflecting retained earnings and a growing equity base.
• Compliance: Timely filing of accounts and confirmation statements with no overdue filings, indicating good governance practices.
• Experienced Directors: Both directors are financial advisers with vested control and appear active in management.

4. Due Diligence Notes:

• Investigate the nature, terms, and justification for related party commissions to assess risks of excessive payments or conflicts of interest.
• Review tax and social security liabilities to confirm accurate provisioning and absence of disputes or arrears.
• Evaluate business model sustainability and revenue streams given the company’s relatively recent incorporation and limited operational history.
• Confirm that unsecured loans from participating interests (£3,998) remain manageable and appropriately disclosed.
• Assess directors’ background and any potential regulatory or compliance issues, although none are apparent from current data.