Company Number: 12485891

Analysis Date: 2025-07-29 20:22 UTC

1. Credit Opinion: DECLINE
   RERA TECHNOLOGIES LTD presents a weak credit profile marked by consistent net current liabilities and negative net assets over the last two reported years. Despite slight growth in net assets from £6,193 (2023) to £12,298 (2024), the company remains in a net liability position with current liabilities exceeding current assets by £12,148 in 2024. The small scale (micro entity) and sole director ownership concentration increases risk. The company’s ability to meet short-term obligations from operating cash flows appears constrained. Without evidence of sustained profitability or cash generation improvements, extending credit would pose high risk.

2. Financial Strength:
   The balance sheet shows limited financial strength typical of a micro entity IT consultancy with minimal fixed assets and very low equity (£12,298 in 2024). Current liabilities have grown from £133,493 to £141,148 while current assets have increased only slightly. The net current liability position (-£12,148) and negative total net assets reflect a fragile capital base and reliance on external funding or director support. Share capital is nominal (£1). The company’s equity has improved modestly but remains insufficient to cover short-term liabilities.

3. Cash Flow Assessment:
   With current liabilities exceeding current assets, liquidity is constrained, suggesting potential difficulty in meeting immediate creditor demands without additional capital injection or improved cash inflows. The reported figures imply working capital deficits and limited cash reserves, increasing risk of payment delays or default. The micro entity status and only one employee further indicate a small operational scale that may limit cash generation potential. No direct cash flow statement is provided, but the balance sheet signals tight liquidity.

4. Monitoring Points:

• Watch for improvement in net current assets turning positive and sustained growth in net assets.
• Monitor creditor days and any late payments or supplier disputes.
• Track profitability trends and operational cash flow generation.
• Observe any changes in director or ownership structure that might affect financial support.
• Ensure timely filing of accounts and confirmation statements to avoid compliance risks.