RJJH LIMITED

Executive Summary

RJJH Limited shows moderate financial stability supported by positive net assets and compliance with filing obligations. However, low liquidity and significant long-term creditor balances suggest potential cash flow vulnerabilities. Concentration of control in a single director warrants further governance review to assess operational sustainability.

RJJH LIMITED - Analysis Report

Company Number: 12721552

Analysis Date: 2025-07-29 12:18 UTC

1. Risk Rating: MEDIUM
   The company exhibits a moderate risk profile primarily due to its low liquidity position relative to current liabilities and significant long-term creditor balances. However, positive net asset levels and shareholder equity provide some financial stability.

2. Key Concerns:

• Liquidity Constraints: Cash on hand is minimal (£544 at 2024 year end) against current liabilities of £184,875, indicating potential short-term cash flow pressure.
• High Long-Term Creditors: The company reports substantial creditors due after more than one year (£184,875), which may represent debt obligations that could strain future cash flows if not managed prudently.
• Single Director and Control Concentration: The sole director and 100% shareholder is also the controlling party, which concentrates operational and governance risk in one individual without apparent independent oversight.

3. Positive Indicators:

• Positive Net Assets and Shareholders’ Funds: Net assets improved significantly to £147,324 in 2024 from £56,877 in 2023, reflecting an increase in retained earnings and overall financial strength.
• Stable Fixed Asset Base: The company holds fixed asset investments valued at £331,655 consistently over recent years, suggesting stable asset backing.
• Compliance with Filing Requirements: Accounts and confirmation statements are filed on time with no overdue filings, indicating adherence to regulatory obligations.

4. Due Diligence Notes:

• Clarify the nature and terms of the "other creditors" classified as amounts falling due after more than one year, including repayment schedules and interest obligations.
• Investigate the company’s cash flow management strategies and sources of liquidity given the low cash balance relative to liabilities.
• Review any off-balance sheet liabilities or contingent risks not apparent in the filed accounts.
• Consider the impact of director concentration on corporate governance and operational resilience.
• Verify whether the company operates primarily as a holding entity (as per SIC code 64209) and assess the performance and risk profiles of underlying investments or subsidiaries.