RITESIM.COM LIMITED
Company number 07349511 · 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: RITESIM.COM LIMITED
1. Credit Opinion: APPROVE
Rationale: RITESIM.COM LIMITED presents a strong credit profile characterised by substantial net assets of £4.9M, minimal leverage, and a consistent multi-year trajectory of equity growth. The company has been profitable and accumulating reserves since transitioning from a net liability position in 2016. The current ratio exceeds 5.5x, and total liabilities represent just 12.6% of total assets, providing considerable headroom for debt service. The primary credit considerations centre on debtor concentration and a declining cash position, which warrant monitoring but do not undermine the overall creditworthiness.
2. Financial Strength
Balance Sheet Summary (FY2025):
| Metric | FY2025 | FY2024 | Movement |
|---|---|---|---|
| Total Assets | £5,650,750 | £5,591,808 | +£58,942 |
| Total Liabilities | £713,486 | £848,451 | -£134,965 |
| Net Assets | £4,915,849 | £4,716,321 | +£199,528 |
| Shareholders' Funds | £4,915,849 | £4,716,321 | +£199,528 |
Key Strengths:
- Equity Base: Nearly £5M in shareholders' funds, built entirely from retained profits (share capital is only £100). This demonstrates long-term value creation and reinvestment in the business.
- Low Leverage: Total liabilities of £713k against total assets of £5.65M yields a debt-to-asset ratio of just 12.6%. The company is not reliant on external debt.
- Growth Trajectory: Net assets have grown from negative £134k (2016) to £4.9M (2025). Year-over-year equity growth has been consistent, indicating sustained profitability.
Long-term Equity Progression:
| Year | Net Assets |
|---|---|
| 2016 | £(134,311) |
| 2017 | £650,011 |
| 2018 | £1,730,369 |
| 2019 | £3,435,178 |
| 2020 | £4,349,424 |
| 2021 | £3,380,004 |
| 2022 | £3,609,532 |
| 2023 | £4,431,070 |
| 2024 | £4,716,321 |
| 2025 | £4,915,849 |
The dip in 2021 likely reflects asset reclassification or investment movements rather than trading losses, given the cash position remained substantial at £1.74M.
Asset Composition Concern:
- Debtors: £3,306,556 (58.5% of total assets) — this is a significant concentration. Quality and collectibility of these receivables is critical. Without an aged debtor analysis, this represents the primary balance sheet risk.
- Fixed Asset Investments: £1,382,639 in subsidiaries/associates (unchanged from FY2024). The performance and dividend capacity of these investments should be understood.
- Intangible Assets: £221,102 (development costs capitalised at 20% straight-line plus IP addresses not amortised). Capitalised development costs should be reviewed for recoverability.
3. Cash Flow Assessment
Liquidity Position (FY2025):
| Metric | FY2025 | FY2024 |
|---|---|---|
| Current Assets | £3,961,312 | £3,945,347 |
| Current Liabilities | £713,486 | £848,451 |
| Net Current Assets | £3,247,826 | £3,096,896 |
| Current Ratio | 5.55x | 4.65x |
| Quick Ratio | 5.52x | 4.63x |
Cash Position Analysis:
| Year | Cash | Year-on-Year Change |
|---|---|---|
| 2020 | £4,279,357 | — |
| 2021 | £1,741,502 | -59.3% |
| 2022 | £460,690 | -73.5% |
| 2023 | £1,088,704 | +136.2% |
| 2024 | £1,123,464 | +3.2% |
| 2025 | £630,700 | -43.8% |
Cash has declined by £492,764 (43.8%) from FY2024 to FY2025. However, this appears to be partially explained by:
- Debtor growth: Debtors increased by £503,173 (from £2.8M to £3.3M), suggesting cash is tied up in receivables rather than lost.
- Stock increase: Stocks grew from £18,500 to £24,056 (minor).
- Liability reduction: Current liabilities decreased by £134,965.
The working capital cycle appears to be extending, which could indicate slower collections or a change in business mix. This is not immediately concerning given the £3.2M net current asset position, but the trend requires monitoring.
Estimated Profitability:
Based on the movement in retained earnings (assuming no dividends, which is likely given the £100 share capital and absence of dividend disclosure):
- FY2025: ~£199,528 (net assets growth)
- FY2024: ~£285,251
- FY2023: ~£821,538
FY2025 appears to show a reduction in profitability, though the company remains profitable.
4. Monitoring Points
| Area | Metric | Current | Concern Threshold |
|---|---|---|---|
| Debtor Quality | Debtors as % of Total Assets | 58.5% | >65% |
| Cash Position | Cash | £630,700 | <£400,000 |
| Current Ratio | Current Assets / Current Liabilities | 5.55x | <2.0x |
| Liability Growth | Total Liabilities YoY | -15.9% | >20% increase |
| Investments | Fixed Asset Investments | £1,382,639 | Impairment indicators |
| Profitability | Retained Earnings Growth | £199,528 | Declining trend over 3+ years |
Specific Monitoring Recommendations:
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Debtor Concentration: Request an aged debtor schedule and top-10 customer analysis. At 58.5% of total assets, collectibility is a material risk. Understand credit terms and average days sales outstanding.
-
Cash Flow Trends: The declining cash position, if not reversed, could erode the liquidity buffer. Monitor quarterly management accounts for cash generation patterns.
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Subsidiary Performance: The £1.38M investment in subsidiaries (carried at cost) should be reviewed for impairment indicators. Request information on dividend income from these investments.
-
Intangible Assets: The increase in capitalised development costs (£155,632 to £221,102) should be assessed against the amortisation policy (20% straight-line). Confirm that the criteria for capitalisation continue to be met.
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Ownership Structure: The two PSCs (Rebak at 50-75% and Butterfield at 25-50%) represent key-person risk. Consider personal guarantees for any significant facilities.
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Filing Compliance: Accounts are currently up to date, but the FY2025 accounts were not signed until March 2026 (9 months after year-end). Monitor for any deterioration in filing timeliness.