REDWAY HOLDINGS LIMITED

Executive Summary

Redway Holdings Limited is a dormant holding company with minimal assets and negligible net equity, relying heavily on related party balances with no formal repayment terms. Its financial position lacks liquidity and independent cash flow, making it unable to service external credit obligations. Credit facilities are not advisable at this stage without significant operational or financial improvement.

REDWAY HOLDINGS LIMITED - Analysis Report

Company Number: 13874286

Analysis Date: 2025-07-20 13:32 UTC

1. Credit Opinion: DECLINE
   Redway Holdings Limited is a dormant holding company with negligible net assets (£200) and minimal fixed assets (£102). The company records significant related party balances with no repayment terms or interest charges, indicating a lack of independent trading activity and limited cash generation capability. Current liabilities closely match current assets, resulting in virtually no working capital buffer. The absence of trading profits, combined with reliance on intra-group transactions, limits the company’s ability to service external debt or meet commercial obligations independently. Therefore, credit approval is not recommended at this stage.

2. Financial Strength:
   The balance sheet shows extremely limited financial strength. Fixed assets are minimal and unchanged year-on-year. Current assets primarily consist of amounts owed by group undertakings (£122,509), which represent intra-group receivables rather than liquid or operational assets. Current liabilities (£122,411) are almost equal to current assets, yielding a net current asset position of only £98. The company’s net assets and shareholders’ funds stand at £200, reflecting minimal equity investment. Overall, the company is financially weak and lacks tangible assets or reserves to support borrowing.

3. Cash Flow Assessment:
   No direct cash or cash equivalents are reported, and the company depends on amounts owed by related parties, which have no formal repayment terms or interest. This creates uncertainty regarding cash inflows and liquidity. The presence of related party creditors (£16,440 owed to group undertakings and other creditors of £105,971) further complicates the cash flow position. Without independent trading cash flows or external revenue streams, the company’s liquidity profile is fragile and largely dependent on intra-group funding arrangements.

4. Monitoring Points:

• Changes in trading status or operational activity beyond dormant classification.
• Development of independent cash generation capabilities or external revenue streams.
• Movements in related party balances and formalization of repayment terms.
• Equity injections or asset acquisitions that improve net asset position and liquidity.
• Directors’ conduct and governance, although no negative records are currently reported.