RIGGING AND ROPES LIMITED

Executive Summary

Rigging And Ropes Limited shows significant liquidity and solvency risks given its negative net current assets and declining equity within two years of operation. While filings are current and the company operates in a specialized industry niche, the minimal asset base and workforce raise concerns about operational sustainability. Further due diligence on cash flows, funding, and business model is recommended before considering investment.

RIGGING AND ROPES LIMITED - Analysis Report

Company Number: SC739164

Analysis Date: 2025-07-20 14:09 UTC

1. Risk Rating: HIGH
   The company exhibits signs of financial distress with negative net current assets and shareholders' funds deteriorating from a positive £56 to a deficit of £912 within two years of operation. This raises concerns about its ability to meet short-term obligations.

2. Key Concerns:

• Negative working capital: Current liabilities exceed current assets by £2,912 as of the latest accounts, indicating liquidity challenges.
• Declining net assets and shareholder funds turning negative, signaling erosion of equity and potential insolvency risk.
• Very limited scale of operations with only one employee and minimal fixed assets (£2,000), raising questions around operational sustainability and capacity to generate sufficient cash flow.

3. Positive Indicators:

• The company is compliant with filing deadlines; accounts and confirmation statements are up to date with no overdue filings.
• The business is classified under a niche SIC code (support activities for petroleum and natural gas mining) which could represent a specialized service offering.
• The company benefits from micro-entity reporting provisions, reducing administrative burdens and costs.

4. Due Diligence Notes:

• Investigate the company’s cash flow situation and sources of funding to understand how it is managing the working capital deficit.
• Review any director or shareholder loans, guarantees, or other off-balance sheet arrangements that may impact solvency.
• Understand the business model and contracts in place, given the low asset base and employee count, to assess operational viability.
• Check for any contingent liabilities or pending litigation that could worsen financial position.
• Review director background and PSCs for any risk factors or related party transactions.