RH BUSINESS CONSULTING LTD

Executive Summary

RH Business Consulting Ltd is a small, micro entity with improving working capital and positive net assets, controlled by a single director with no adverse records. The company demonstrates modest but stable financial strength and liquidity. Credit facilities can be approved cautiously with ongoing monitoring of cash flow and financial growth due to its limited scale and financial history.

RH BUSINESS CONSULTING LTD - Analysis Report

Company Number: 13544287

Analysis Date: 2025-07-29 18:00 UTC

1. Credit Opinion: APPROVE with caution. RH Business Consulting Ltd is a micro entity with a very modest asset base but shows positive net current assets and net equity. The company is active, with no overdue filings and a single experienced director who holds full control. However, its scale and financials are minimal, limiting financial flexibility. Credit should be extended conservatively and possibly with monitoring or limits reflecting the small size and limited financial history.

2. Financial Strength: The balance sheet shows no fixed assets and a current asset base composed largely of cash or receivables of £2,762 as of March 2024, against current liabilities of £671, resulting in net current assets of £2,091. Net assets have grown from £236 in 2023 to £2,092 in 2024, indicating improved working capital and shareholder equity. The company’s liabilities are low and short-term, suggesting low gearing and minimal financial risk from debt. Overall, the financial position is stable but very modest in scale.

3. Cash Flow Assessment: The company’s working capital position improved significantly over the last year, with net current assets rising nearly tenfold. This indicates improved liquidity and ability to meet short-term obligations. The average number of employees is two, suggesting low fixed overheads, which supports cash flow stability. However, cash and receivables are small in absolute terms, so the company may be vulnerable to cash flow volatility. Monitoring of cash flow generation and receivables collection is recommended.

4. Monitoring Points:

• Continued growth in net current assets and net equity.
• Timely payment of liabilities and maintenance of positive working capital.
• Stability or growth in turnover and profitability, as these are not disclosed here.
• Any changes in director or ownership structure, given single director control.
• Potential for increased liquidity risk if business volume or client payment terms change.