RELY TRANS LTD

Executive Summary

RELY TRANS LTD is a micro private limited company with significant and worsening negative equity and working capital deficits, indicating poor financial health and high credit risk. The company lacks sufficient liquidity and capital to comfortably meet liabilities, leading to a recommendation to decline credit facilities at this time. Close monitoring of their financial position is warranted for any future credit consideration.

RELY TRANS LTD - Analysis Report

Company Number: 13289908

Analysis Date: 2025-07-29 16:07 UTC

1. Credit Opinion: DECLINE
   RELY TRANS LTD shows a persistently negative net asset position with increasing net current liabilities, indicating ongoing financial distress. The company’s micro status and minimal share capital (£1.00) provide little equity buffer. Despite being active and filing on time, its negative working capital and shareholders' funds suggest insufficient financial strength to meet obligations or service debt. Without significant improvement or external support, extending credit poses a high risk.

2. Financial Strength:
   The balance sheet reveals a decline in fixed assets from £14,347 in 2021 to £9,182 in 2024, alongside severely negative current assets (-£15,281 in 2024) and minimal current liabilities (£200). Net current liabilities have worsened from approximately -£13,740 in 2023 to -£15,080 in 2024. Total assets less current liabilities remain negative at -£5,898, reflecting erosion of capital and poor net asset value. This weak financial base undermines resilience and restricts borrowing capacity.

3. Cash Flow Assessment:
   The company exhibits chronic working capital deficits and negative current assets, signaling potential liquidity constraints. The absence of positive net current assets implies limited ability to cover short-term liabilities. With only one employee and no indication of cash reserves or positive operating cash flow, the business likely depends on external funding or director support to sustain operations. This raises concerns about timely payment of creditors and meeting financial commitments.

4. Monitoring Points:

• Track changes in net current assets and working capital to detect improvement or further deterioration.
• Monitor any increase in share capital or external financing to strengthen equity.
• Review timely filing of accounts and confirmation statements to assess ongoing compliance and operational stability.
• Observe any changes in director appointments or control that might affect governance or financial strategy.
• Watch for signs of improved cash flow or profitability in future filings.