RELIABLE LETTINGS AND DEVELOPMENTS LTD

Executive Summary

Reliable Lettings and Developments Ltd is a recently formed small private company with a modest positive net asset and liquidity position. While it currently shows sufficient working capital to meet short-term obligations, the absence of trading history and limited financial buffer require cautious credit exposure. Conditional approval is appropriate, contingent on ongoing monitoring of cash flow, debtor collection, and financial filings.

RELIABLE LETTINGS AND DEVELOPMENTS LTD - Analysis Report

Company Number: 13971491

Analysis Date: 2025-07-19 13:04 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Reliable Lettings and Developments Ltd is a newly incorporated private limited company (since March 2022) operating in the letting and real estate sector. The latest financials show a positive but very modest net current asset position (£425) and shareholders' funds of the same amount. The company has no employees and minimal trading history, which limits the ability to fully assess its operational performance and cash flow sustainability. Given its early stage and small size, I recommend conditional approval with monitoring of trading progress, cash flow generation, and timely filing of future accounts before any significant credit exposure is considered.

2. Financial Strength:

• The balance sheet at 31 March 2024 shows current assets of £6,003 against current liabilities of £5,578 resulting in net current assets (working capital) of £425.
• Shareholders' funds have increased from £1 at incorporation to £425, reflecting some retained profit or capital injection.
• There are no fixed assets or long-term liabilities disclosed, indicating a lean asset base.
• The company’s capital structure is minimal, which constrains its financial buffer against adverse events.
• The small net asset base and absence of significant tangible assets limit collateral value for secured lending.

3. Cash Flow Assessment:

• Cash at bank is £3,521, representing over half of current assets, indicating a reasonable liquidity position at year-end.
• Debtors of £2,482 represent amounts due from customers or others, which may impact near-term cash flow depending on collectability.
• Current liabilities primarily comprise other creditors (£5,478) and a small tax liability. The timing and nature of these payables should be verified to assess liquidity risk.
• The company shows a positive working capital position, but the margin is tight, implying limited buffer for short-term cash flow fluctuations.
• No detailed profit and loss or cash flow statement is provided, so ongoing operational cash generation cannot be confirmed.

4. Monitoring Points:

• Monitor subsequent trading results and cash flow statements to confirm ability to generate consistent operating cash flow.
• Watch debtor aging and creditor payment terms to ensure working capital remains positive and liquidity is maintained.
• Track any increase in liabilities or capital expenditure that could strain the limited equity base.
• Confirm timely filing of future accounts and statutory returns to avoid regulatory penalties or flags.
• Review management’s plans for growth or financing to understand future credit risk exposure.