RFTT LTD

Executive Summary

RFTT LTD, a micro-entity engaged in specialised design activities, maintains positive net assets and compliance with statutory filings, but shows a notable decline in equity and increased current liabilities over the last two years. The company's small scale and single-person management structure introduce operational and liquidity risks that warrant further investigation. Overall, the company presents a medium risk profile requiring close monitoring of financial trends and operational resilience.

RFTT LTD - Analysis Report

Company Number: 13730851

Analysis Date: 2025-07-29 14:07 UTC

1. Risk Rating: MEDIUM
   Justification: While RFTT LTD is solvent with positive net assets and no overdue filings, the company shows a steady decline in net assets over the last two years, which warrants caution. Its micro-entity size and single-employee operation suggest limited operational scale and potential vulnerability to cash flow fluctuations.

2. Key Concerns:

• Declining net assets from £32,902 in 2021 to £19,598 in 2023, indicating erosion of equity and potential profitability or cash retention issues.
• Current liabilities have nearly doubled from £9,675 (2022) to £17,978 (2023), which could pressure liquidity if not matched by cash inflows.
• Single director and sole employee structure may raise operational risk due to dependency on one individual and limited management depth.

3. Positive Indicators:

• Positive net current assets (£13,213 in 2023) suggest the company can meet short-term obligations currently.
• No overdue statutory filings (accounts and confirmation statements) indicate good compliance and governance standards.
• Ownership and management consolidated in one individual (Matthew Leslie Earle), potentially allowing rapid decision-making and clear accountability.

4. Due Diligence Notes:

• Investigate reasons behind the decline in net assets and increase in current liabilities, including profitability trends and working capital management.
• Review cash flow statements (if available) to assess liquidity beyond balance sheet snapshots.
• Assess the sustainability of business operations given the micro scale and sole employee/director setup, including client concentration and revenue stability.
• Confirm no undisclosed liabilities or contingent risks that might affect solvency.
• Verify the background and reputation of the director given his sole control and operational role.