RIGHT RENTS PROPERTIES LTD

Executive Summary

RIGHT RENTS PROPERTIES LTD is a newly established company showing early-stage financial stability with positive but minimal working capital and cash reserves. While current liquidity appears sufficient, the very low equity base and lack of operational history suggest caution. Focused efforts on building revenue, increasing financial buffers, and careful cash flow management will be key to transitioning into a financially healthy, growing enterprise.

RIGHT RENTS PROPERTIES LTD - Analysis Report

Company Number: 15168327

Analysis Date: 2025-07-20 19:07 UTC

Financial Health Assessment for RIGHT RENTS PROPERTIES LTD

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1. Financial Health Score: C

Explanation:
The company is in its infancy—incorporated less than a year ago with a modest capital base. It shows a positive but very limited net asset position (£851) and a small working capital surplus (£851). While there are no immediate red flags such as negative net assets or overdue filings, the financial "vital signs" indicate a delicate early-stage condition with limited operational history and minimal financial buffer. This warrants a cautious outlook, hence a mid-level score of C.

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2. Key Vital Signs

Metric	Value	Interpretation
Net Current Assets (Working Capital)	£851	Positive but minimal working capital; indicates liquidity is just sufficient to cover short-term obligations.
Cash at Bank	£33,796	Healthy cash position relative to liabilities; provides a cushion for operating expenses.
Current Liabilities	£32,945	Current liabilities nearly equal to cash; tight liquidity margin suggests vulnerability to cash flow shocks.
Net Assets (Equity)	£851	Very low equity base; limited buffer for absorbing losses.
Share Capital	£1	Nominal share capital; typical for a new small company.
Employees	0	No employees yet; suggests minimal operating activity or outsourcing.
Filing Status	Up to date	No overdue filings; good compliance health indicator.

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3. Diagnosis

RIGHT RENTS PROPERTIES LTD is a newly formed private limited company operating in the real estate management and software development sectors. The financial "vitals" resemble those of a newborn patient: small but stable. The positive net current assets and cash balance are encouraging signs of initial funding and liquidity, but the very thin equity and working capital mean the company has little margin for error or unexpected expenses.

The absence of employees indicates it may be in a pre-operational or early development phase, relying perhaps on the director or contractors. The diversified SIC codes suggest a multi-faceted business model, which may require careful resource allocation to avoid strain.

No audit requirement and abridged accounts are standard for a small company but mean less insight into profitability or cash flow from operations. The lack of turnover and profit/loss data ("income statement not delivered") could be seen as symptoms of an early, pre-revenue stage.

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4. Recommendations

• Build Working Capital Cushion: Consider increasing cash reserves or equity funding to enhance liquidity and provide a buffer for operational growth and unexpected costs.

• Develop Revenue Streams: Accelerate activities that generate turnover to move from the startup phase to sustainable operating cash flow, reducing reliance on initial capital.

• Monitor Cash Flow Diligently: Maintain a healthy "cash flow pulse" to avoid liquidity distress, given the tight current liabilities coverage.

• Employee Planning: Evaluate the need for staff or outsourcing to scale operations efficiently while controlling fixed costs.

• Financial Reporting: As the company grows, consider preparing fuller accounts with profit and loss details to better track operational health and attract investors or lenders.

• Risk Management: Maintain compliance with filing deadlines and regulatory requirements to avoid penalties and maintain good standing.

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