RISING NORTH TRADING AND CONSULTING LTD

Executive Summary

Rising North Trading and Consulting Ltd operates with a low equity base and significant long-term debt, resulting in moderate solvency risk despite positive net current assets and cash balances. The company maintains good regulatory compliance but lacks publicly available profitability data, which constrains full financial assessment. Further analysis of profit and loss performance and loan terms is recommended to clarify operational sustainability and risk profile.

RISING NORTH TRADING AND CONSULTING LTD - Analysis Report

Company Number: 12447634

Analysis Date: 2025-07-29 20:31 UTC

1. Risk Rating: MEDIUM
   The company shows a modest net asset base with limited equity and significant long-term liabilities. While it remains active and compliant with filing requirements, its financial structure with sizeable bank loans relative to equity suggests moderate solvency risk.

2. Key Concerns:

• Leverage and Solvency: The presence of £29,250 in bank loans due after more than one year against net assets of only £1,398 indicates high leverage, potentially stressing solvency if cash flows weaken.
• Low Equity Base: Shareholders’ funds are very low (£1,398), limiting the buffer to absorb losses or financial shocks.
• Profit and Loss Account Not Filed Publicly: The profit and loss account was not delivered to the Registrar, limiting transparency into profitability and operational performance.

3. Positive Indicators:

• Positive Net Current Assets: Net current assets improved substantially to £30,648, indicating short-term liquidity to meet current obligations (£6,021 creditors due within one year).
• Timely Compliance: No overdue filings for accounts or confirmation statements, reflecting good regulatory compliance and governance adherence.
• Stable Cash Position: Cash at bank remains positive (£36,669) supporting ongoing operational needs.

4. Due Diligence Notes:

• Review Profit and Loss Details: Obtain the full profit and loss statement to assess profitability trends and operational sustainability.
• Assess Loan Terms and Covenants: Investigate the bank loan agreement including repayment terms and any covenants that could affect financial flexibility.
• Examine Cash Flow Statements: Understand cash generation capability, including working capital cycles given the textile wholesale and retail activity lines.
• Director Changes and PSC Impact: Consider impact of recent director change (September 2024) and confirm control structure remains stable under new director.