Company Number: 15792680

Analysis Date: 2025-07-29 18:18 UTC

1. Credit Opinion: DECLINE

Riviera Consulting Ltd is a newly incorporated micro-entity (June 2024) with very limited trading history. Its latest accounts to 31 December 2024 show net liabilities of £23,467 and negative working capital of the same amount. The company holds only £178 in current assets against current liabilities of £23,645, indicating an immediate liquidity shortfall. There is no profit and loss data disclosed, but the balance sheet reflects a start-up phase with accumulated losses or initial funding shortfall. The parent company and director have committed to support going concern, but this reliance on external support rather than generated cash flow heightens credit risk. Without trading history or positive cash flow, the company currently lacks the financial strength and operational resilience needed to service debt obligations. Therefore, extending credit at this stage is high risk.

2. Financial Strength:

The balance sheet is weak with net liabilities of £23,467 and negative shareholders’ funds. The company’s only asset is a nominal £178 in current assets, likely cash or receivables, while short-term creditors exceed £23k. This imbalance points to insufficient capitalization and a lack of tangible or fixed assets. The company employs one person (the director) and is categorized as micro, so limited scale and resources restrict financial flexibility. The parent’s support is critical but unquantified in terms of duration or amount. Overall, financial strength is poor and dependent on external backing.

3. Cash Flow Assessment:

Given the negative net current assets position, the company faces immediate liquidity constraints. There is no reported profit or retained earnings, and with current liabilities exceeding current assets by a large margin, the company cannot meet short-term obligations from internal resources. The director’s note on going concern references external support, implying cash inflows from related parties rather than operating cash flow. Working capital management is currently negative, exposing the company to cash flow risk if parent support diminishes or trading does not ramp up promptly.

4. Monitoring Points:

• Monitor quarterly filings and next accounts for improved asset base and profitability.
• Watch for changes in current liabilities relative to current assets to assess liquidity improvement.
• Review any parent company financial statements or commitments to gauge ongoing support.
• Track director or related party loans and their terms to understand funding stability.
• Evaluate incorporation of operating cash flow and progress toward positive net assets.
• Keep watch for any late filings or regulatory warnings indicating operational or financial distress.