RFF MARINE LTD

Executive Summary

RFF MARINE LTD exhibits a stable and improving financial position with growing equity and working capital, indicating sound financial health for a micro-entity. However, an increase in current liabilities suggests the need for vigilant cash flow management to avoid liquidity challenges. With prudent financial practices, the company is well-positioned for continued stability and growth.

RFF MARINE LTD - Analysis Report

Company Number: 13063533

Analysis Date: 2025-07-29 13:32 UTC

Financial Health Assessment for RFF MARINE LTD

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1. Financial Health Score: B

Explanation:
RFF MARINE LTD demonstrates a solid and improving financial position typical of a micro-entity in its early years. The company shows a positive trend in net assets and working capital, indicating expanding financial stability. However, the current liabilities slightly exceed current assets in some years, which suggests moderate liquidity caution is warranted. Overall, the company appears financially healthy but should continue monitoring cash flow to maintain this status.

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2. Key Vital Signs

Metric	2023 (£)	2022 (£)	Interpretation
Fixed Assets	3,514	3,423	Stable investment in long-term assets; indicates business continuity and asset base maintenance.
Current Assets	29,323	28,317	Healthy short-term assets; good potential to cover short-term obligations.
Current Liabilities	34,966	23,843	Increase in short-term debts; requires close monitoring to avoid liquidity stress.
Net Current Assets (Working Capital)	9,036	4,474	Positive working capital, improving from prior year; suggests better ability to cover immediate liabilities.
Net Assets (Equity)	11,545	6,797	Growing net assets signal retained earnings and value accumulation, a sign of financial strength.
Share Capital	190	190	Minimal share capital typical for a micro company; equity growth mainly from retained profits.

Interpretation of Vital Signs:

• The company’s net current assets have doubled, reflecting improved liquidity and operational efficiency—akin to a patient’s improved vital signs after treatment.
• The growth in net assets signals that the company is accumulating value, which is a positive prognosis.
• The rise in current liabilities requires attention; while manageable now, increasing short-term debts can be a symptom of operational cash flow strain if unchecked.
• Fixed assets remain stable, indicating no significant asset disposals or acquisitions, which supports a steady state of business operations.

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3. Diagnosis

RFF MARINE LTD’s financial "vital signs" suggest a healthy but cautious condition. The company is growing its equity base and working capital, reflecting effective management of resources and profitability retention. However, the increased current liabilities relative to current assets highlight the symptom of potential liquidity strain if cash inflows are disrupted.

The business is in an early growth phase (incorporated in 2020) and is operating within the micro-entity category, with only one employee and modest fixed assets. This small scale limits complexity but also means the company should be vigilant about cash flow management and creditor obligations.

Overall, the company’s financial “pulse” is strong, but it needs to avoid the “symptoms of distress” such as overreliance on short-term borrowing or delayed payments to suppliers.

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4. Recommendations

• Strengthen Cash Flow Management:
  Closely monitor accounts payable and receivable to ensure healthy cash flow. Avoid excessive reliance on short-term credit to prevent liquidity “crises.” Consider cash flow forecasting as a regular practice.

• Manage Current Liabilities:
  Aim to reduce short-term liabilities or restructure them where possible to improve liquidity ratios. This will help maintain a “healthy heartbeat” in working capital.

• Maintain Asset Base and Capital Structure:
  Continue to invest prudently in fixed assets to support business operations without overextending financial resources.

• Plan for Growth:
  As net assets grow, consider strategic investments or expansion opportunities cautiously, ensuring that financial “health” is not compromised.

• Regular Financial Review:
  Conduct periodic financial health checks to detect early “symptoms” of financial stress, allowing for timely intervention.

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