RIGMAR SERVICES LIMITED
Company number SC327164 · Monitor this company
This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.
Credit Analysis: RIGMAR SERVICES LIMITED
1. Credit Opinion: DECLINE
Reasoning: The company is technically insolvent with negative net assets of £1.6M, virtually no cash reserves (£1,730), and net current liabilities of £1.9M. The going concern basis is contingent upon external support from The Lamia Trust and the wider Interocean group. Without explicit parent company guarantees, this entity cannot service standalone debt obligations and presents unacceptable credit risk.
2. Financial Strength
Balance sheet position is severely compromised:
| Metric | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|
| Net Assets | (£1.60M) | (£2.60M) | (£14.83M) | (£14.10M) |
| Cash | £1,730 | £138,611 | £167,021 | £226,343 |
| Current Liabilities | £3.29M | £5.13M | £20.50M | £17.35M |
- Insolvency: Shareholders' funds stand at negative £1.60M. The company has accumulated losses exceeding £1.5M against share capital of just £123.
- Improvement trajectory: Net assets improved from negative £14.8M (2022) to negative £1.6M (2024), suggesting a significant debt restructuring or write-off occurred between 2022-2023. While the direction of travel is positive, the absolute position remains deeply deficient.
- Current ratio: Current assets of £1.37M against current liabilities of £3.29M yields a current ratio of 0.42:1 — critically below the 1.0 threshold. The company cannot cover short-term obligations from its balance sheet.
- Tangible asset backing: Minimal at £29,136. The £298,905 investment asset offers uncertain realisation value.
3. Cash Flow Assessment
Liquidity position is critical:
- Cash depletion: Cash has fallen from £226,343 (2021) to £1,730 (2024) — a 99.2% decline over three years. This is unsustainable and indicates the business is consuming rather than generating liquidity.
- Working capital deficit: Net current liabilities of £1.92M mean the company requires ongoing group support simply to trade. There is no internal liquidity buffer.
- Debtor reliance: Virtually all current assets (£1.37M of £1.37M) are debtor balances. Collection risk is therefore material — any debtor default would immediately compound the cash crisis.
- Going concern dependency: The accounts explicitly state that going concern rests on: (i) The Lamia Trust's non-enforcement letter for a £550k loan, and (ii) continued group support. This is a significant conditional dependency, not a self-sustaining position.
4. Monitoring Points
If credit were extended (with group guarantees), the following require ongoing surveillance:
| Metric | Target | Rationale |
|---|---|---|
| Cash balance | >£100k | Current £1,730 provides zero buffer; must recover meaningfully |
| Current ratio | >0.8:1 | Must demonstrate movement toward self-sufficiency |
| Group support letter | Annual renewal | Non-enforcement letter from The Lamia Trust must remain in force |
| Debtor collection | <60 days | Given debtor concentration, aging must be monitored closely |
| Net asset trajectory | Positive trend | Must continue reducing liabilities; reversal would be terminal |
| Parent financials | Annual review | Interocean Holdings Limited consolidated position underpins viability |
| Sector conditions | Ongoing | Oil & gas support services are cyclical; wind farm diversification noted but nascent |
| Filing compliance | Timely | Accounts currently up to date; any delay would signal distress |
Sector Context: The company operates in petroleum/natural gas support services — a sector subject to significant cyclical pressure and energy transition risk. The accounts note increasing wind farm activity, which may offer diversification, but this appears early-stage.
Group Structure: The company is a subsidiary within the Interocean Holdings Limited group, ultimately controlled by The Lamia Trust. Any credit decision must assess whether group guarantees are available and enforceable, and whether the parent entity has sufficient financial capacity to absorb these liabilities.