RHINIFY LTD

Executive Summary

Rhinify Ltd shows significant financial stress with negative working capital and shareholders' funds deteriorating over the last two years, coupled with very low cash reserves. However, the company maintains regulatory compliance and remains operational, though its ability to meet obligations and sustain operations without external support appears limited. Further scrutiny of creditor terms and business viability is recommended before investment.

RHINIFY LTD - Analysis Report

Company Number: 14192260

Analysis Date: 2025-07-19 11:54 UTC

1. Risk Rating: HIGH
   The company exhibits a negative net current asset position and negative shareholders’ funds over consecutive years, indicating ongoing financial distress and a potential inability to meet short-term obligations. The small scale and very limited cash reserves exacerbate liquidity concerns.

2. Key Concerns:

• Negative Working Capital: Net current liabilities increased from £1,056 in 2023 to £2,221 in 2024, signaling worsening liquidity and potential difficulties in paying creditors.
• Negative Shareholders’ Funds: Persistent negative equity (approximately £2,222 in 2024) suggests accumulated losses and insufficient capital to absorb further losses.
• Minimal Cash Reserves: Cash on hand declined sharply from £2,137 in 2023 to £222 in 2024, which could impair the company’s ability to cover immediate expenses or unexpected costs.

3. Positive Indicators:

• Compliance and Filing Status: The company is up to date with both its accounts and confirmation statement filings, which implies regulatory compliance and good governance practices.
• Small Company Exemption: The filing under the small company regime suggests a lean operational structure with limited complexity.
• Ongoing Business Activity: The company remains active, with a live website and active contact details, indicating operational continuity.

4. Due Diligence Notes:

• Investigate the nature and terms of creditors totaling £7,543 to assess urgency and ability to negotiate payment terms.
• Review the company’s business model, revenue streams, and cash flow forecasts to understand operational viability and plans for returning to profitability.
• Verify the director's plans or external financing arrangements to address negative equity and liquidity shortages.
• Assess any contingent liabilities or off-balance-sheet obligations not disclosed in the accounts.
• Consider director background and conduct records to ensure no governance or compliance risks.