RISBRIDGER SCOTT & SONS LTD

Executive Summary

RISBRIDGER SCOTT & SONS LTD has shown a significant turnaround in financial health with a strong increase in net assets due to asset revaluation, moving from negative equity to a positive position. However, symptoms such as very low cash reserves and overdue filings highlight liquidity and administrative challenges that need urgent attention. With focused cash flow management and compliance regularization, the company can build on its recovery and improve overall financial wellness.

RISBRIDGER SCOTT & SONS LTD - Analysis Report

Company Number: 12473682

Analysis Date: 2025-07-29 16:07 UTC

Financial Health Assessment for RISBRIDGER SCOTT & SONS LTD

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1. Financial Health Score: C

Explanation:
RISBRIDGER SCOTT & SONS LTD demonstrates a mixed financial condition. The company has shown significant improvement in net assets recently, moving from a negative equity position in prior years to a positive net asset base of £3.8 million at the end of 2023. This marks a turning point akin to a patient recovering from a prior illness. However, underlying symptoms such as large current liabilities, modest cash balances, and overdue filings suggest ongoing caution is warranted. The company’s financial "vital signs" are improving but still require active management to ensure stability and growth.

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2. Key Vital Signs

Metric	2023 Value	Interpretation
Net Assets (Equity)	£3,817,924	Positive and growing—sign of improving financial health.
Current Assets	£1,221,199	Increased significantly, but mostly debtors, indicating cash conversion risk.
Cash at Bank	£10	Critically low—poor liquidity or cash flow issues.
Current Liabilities	£1,051,562	Large short-term obligations; however, much improved from prior years.
Long-term Creditors	£8,051,713	Significant long-term debt remains; manageable if assets generate income.
Net Current Assets	£169,637	Slightly positive after years of negative working capital, indicating better short-term financial "pulse".
Share Capital	£1	Minimal equity injection, typical for micro companies but limits financial buffer.
Overdue Accounts Filing	Yes (2022 accounts overdue)	Regulatory compliance issue; may indicate administrative strain or liquidity concerns.

Interpretation of Vital Signs:

• The company’s fundamental asset base has strengthened, largely due to a significant revaluation of tangible fixed assets (land & buildings increased from £6.08M to £11.7M). This is like a patient gaining strength from improved bone density after therapy.
• However, very low cash reserves (only £10) point to a “symptom of distress” in terms of liquidity. The company’s ability to meet immediate obligations depends heavily on converting debtors to cash quickly.
• Past years’ negative net current assets highlight prior working capital struggles, but 2023 shows a recovery to a positive net current asset position, which is encouraging.
• Overdue filing of accounts signals administrative or operational stress, which can compound financial risks if penalties or loss of creditor confidence occur.

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3. Diagnosis

RISBRIDGER SCOTT & SONS LTD is currently in a recovering but fragile financial state. The large increase in net assets driven by property revaluation acts like a vital organ stabilizing in a recovering patient. This has shifted the company from prior years of negative equity (financial “illness”) to positive net worth (“recovery”). However, the liquidity remains precarious, with almost no cash on hand and a high reliance on debtors converting into cash to meet short-term liabilities.

The long-term creditors and loans from directors indicate the company is still carrying a considerable debt “load,” which can be sustainable if the real estate assets generate steady income or capital gains. The small share capital and retained losses reflect a lean financial structure with limited equity cushion.

Potential risks include:

• Cash flow bottlenecks due to low cash and reliance on debtors.
• Administrative risks from overdue accounts filings.
• High leverage which could stress financial health if asset values decline or income falters.

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4. Recommendations

• Improve Liquidity Management:
  Focus on accelerating debtor collections and maintaining a healthy cash buffer. Consider negotiating better payment terms with creditors or restructuring short-term liabilities to ease immediate pressure.

• Regularise Compliance:
  Prioritize filing overdue accounts to avoid penalties or reputational damage. Implement a strict calendar and assign responsibility to ensure timely filings.

• Debt Management Strategy:
  Engage with creditors and directors to explore options for refinancing or stretching repayment terms of long-term loans to reduce financial strain.

• Asset Utilization:
  Leverage the strong fixed asset base by exploring opportunities to generate additional income through property leasing or strategic sales if needed.

• Financial Monitoring:
  Establish regular financial health checks (monthly cash flow forecasts, debtor aging reports) to detect early signs of distress and act proactively.

• Consider Equity Injection:
  If possible, seek additional equity or capital injections to strengthen the financial cushion and reduce reliance on debt.

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