RIGADE PROPERTIES LIMITED

Executive Summary

Rigade Properties Limited exhibits a stable but cautious financial position with positive net assets and improving cash reserves. The company’s financial health is currently satisfactory (Grade C) but is heavily reliant on intra-group funding, signaling a need to diversify financing and bolster liquidity. With strategic management of cash flow and funding sources, the company can strengthen its financial resilience and long-term viability.

RIGADE PROPERTIES LIMITED - Analysis Report

Company Number: 13143502

Analysis Date: 2025-07-20 17:39 UTC

Financial Health Assessment of Rigade Properties Limited

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1. Financial Health Score: C

Explanation:
Rigade Properties Limited demonstrates modest but improving financial health. The company shows a positive net asset position and slight growth in shareholders' funds, which are encouraging signs. However, the company carries significant long-term liabilities owed to its parent group, indicating reliance on related-party funding rather than external financing or operational cash flow. Current liabilities remain high relative to cash reserves, suggesting a cautious liquidity position. Overall, the company's finances are stable but exhibit symptoms that require careful monitoring and strategic attention.

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2. Key Vital Signs

Metric	31-Dec-2024	Interpretation
Cash at Bank	£17,446	Cash reserves have increased, indicating improved liquidity but still relatively low.
Current Liabilities	£4,500 (short-term)	Very low short-term liabilities, which reduces immediate liquidity pressure.
Amounts owed >1 year	£361,279	Significant long-term debt owed to parent company, indicating dependency on internal loans.
Net Current Assets (Working Capital)	£12,946	Positive working capital indicates the company can cover short-term obligations comfortably.
Net Assets	£17,719	Positive net asset value shows the company’s equity has a buffer above liabilities.
Shareholders’ Funds	£17,719	Equity has grown since last year, indicating retained earnings or value accretion.
Fixed Assets (Net Book Value)	£366,052	Substantial fixed assets, typical for a real estate company, stable over the year.

Interpretation of Vital Signs:
The company’s cash position is improving, and current liabilities are low, giving a stable short-term liquidity outlook. However, the large long-term debt owed to the parent company (Rigade Limited) acts like a mortgage on the business, suggesting reliance on intra-group funding rather than operational cash generation. The net asset position is positive but modest relative to the scale of fixed assets and long-term liabilities.

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3. Diagnosis: Financial Condition and Symptoms

• Healthy Signs:

  • Positive net assets and shareholders’ funds growth suggest value is being maintained or built.
  • Working capital is positive, indicating the company can meet short-term obligations without distress.
  • Stable fixed asset base is appropriate for a real estate company, reflecting tangible property holdings.

• Symptoms of Financial Caution:

  • Heavy reliance on amounts owed to group undertakings (£361k) signifies limited external funding and possible liquidity risk if intra-group support weakens.
  • Cash balances, while improved, are still modest considering the size of liabilities, suggesting limited operational liquidity cushions.
  • Absence of an income statement (exempt due to small company status) limits visibility on profitability and cash flow health.
  • The company is relatively young (incorporated 2021), so its financial position is still evolving and potentially more vulnerable to market fluctuations.

• Underlying Health:
  The company appears financially stable with no immediate signs of distress. However, the heavy internal borrowing and relatively low cash reserves suggest it should be cautious about external shocks or changes in group funding arrangements. The company’s health is akin to a patient with a manageable chronic condition—stable but requiring ongoing monitoring and management.

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4. Recommendations for Financial Wellness Improvement

• Diversify Funding Sources:
  Reduce reliance on intra-group loans by exploring external financing options such as bank loans or equity investment to improve financial independence and reduce risk.

• Improve Cash Reserves:
  Build a stronger cash buffer through improved operational cash flow management or further capital injections to enhance liquidity resilience.

• Profitability and Cash Flow Monitoring:
  Even though statutory exemptions apply, consider internal management accounts and cash flow forecasts to track financial performance and prepare for any downturns.

• Asset Utilization Review:
  Assess the fixed asset portfolio for opportunities to optimize value, e.g., selling non-core properties or improving asset yields.

• Strengthen Governance and Reporting:
  Maintain timely filing and consider voluntary audit or external review for enhanced stakeholder confidence and transparency.

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Executive Summary