Company Number: 13788006

Analysis Date: 2025-07-20 16:50 UTC

1. Credit Opinion: DECLINE
   RKWB LIMITED’s most recent financials show significant concerns regarding solvency and liquidity. The company’s net assets have deteriorated from a positive £15,738 in 2021 to negative £24,537 in 2023, indicating that liabilities exceed assets. Moreover, the company holds substantial long-term creditors (£53,599 in 2023) compared to fixed assets (£12,812), suggesting over-reliance on debt financing without adequate asset backing. These factors point to a weak financial position with increased risk of default on credit obligations. Without evidence of improving profitability or cash flow, extending credit is not advisable.

2. Financial Strength:
   The balance sheet reveals a decline in fixed assets and current assets over two years, while current liabilities and especially long-term liabilities remain high. The net current assets remain positive at £16,250 in 2023, but this is offset heavily by creditors due after more than one year, resulting in negative shareholders’ funds. The company’s equity position is negative and worsening, which signals erosion of capital and poor financial resilience. The micro-entity status limits disclosure, but the data points to insufficient capital and high gearing.

3. Cash Flow Assessment:
   Current assets of £19,910 against current liabilities of £3,660 in 2023 suggest reasonable short-term liquidity. However, this is misleading as the company’s long-term creditors amount to £53,599, which implies significant cash outflows required beyond the immediate term. The absence of detailed profit and loss or cash flow statements restricts full assessment, but the negative net asset position and high debt levels raise concerns about the company’s ability to generate sufficient operational cash flow to meet its debt obligations sustainably.

4. Monitoring Points:

• Watch for improvements in net asset position and reduction in long-term liabilities.
• Monitor cash flow statements and profitability trends once available to assess operating performance.
• Track director’s actions on debt restructuring or capital injections.
• Keep a close eye on any overdue filings or changes in company status that may indicate financial distress.
• Review any changes in ownership or control that could impact governance and financial stewardship.