RKT ENTERPRISES MONMOUTH LTD

Executive Summary

RKT Enterprises Monmouth Ltd presents a sound credit profile with improving financial metrics and adequate liquidity for a micro-sized retail business. The company’s balance sheet strength and positive cash flow support its ability to meet debt obligations. Continued monitoring of operational performance and working capital management is recommended to maintain creditworthiness.

RKT ENTERPRISES MONMOUTH LTD - Analysis Report

Company Number: 14015939

Analysis Date: 2025-07-29 20:05 UTC

1. Credit Opinion: APPROVE
   RKT Enterprises Monmouth Ltd demonstrates a stable and improving financial position with increasing turnover and profitability. The company operates in retail sale of non-specialised stores predominantly selling food and beverages, a sector with steady demand. The director holds full control, indicating clear decision-making authority. There are no overdue filings or adverse company status flags. The current asset coverage of liabilities and positive net assets suggest the ability to service short-term obligations and potential credit facilities.

2. Financial Strength:
   The company shows a healthy balance sheet for a micro entity. Fixed assets grew modestly from £6,701 to £8,000 year on year. Current assets increased from £23,730 to £28,410, while current liabilities rose from £17,915 to £22,140, resulting in net current assets of £6,270 (up from £5,815). Long-term liabilities are relatively low at £4,475. Net assets and shareholders’ funds improved to £9,795 from £8,540, reflecting retained earnings. The equity base, though small, is solid for the size and age of the business.

3. Cash Flow Assessment:
   Working capital is positive and growing, indicating good short-term liquidity. Current assets comfortably cover current liabilities by a ratio of approximately 1.28x. The company employs 4 staff and maintains cost control with consistent expenses relative to revenue growth (£278k turnover in 2024 vs £232k in 2023). Profit before tax increased slightly to £26,877, supporting internal cash generation. No off-balance sheet liabilities or contingent risks are noted.

4. Monitoring Points:

• Monitor turnover and profit trends to ensure continued growth and margin maintenance.
• Watch creditor days and current liabilities for any signs of liquidity stress.
• Verify ongoing compliance with filing deadlines and governance standards.
• Keep track of any changes in director control or ownership structure that may impact decision-making or risk profile.
• Observe external market conditions impacting retail food sales, such as supply chain disruptions or inflation.