RL INVESTMENT PROPERTIES LLP

Executive Summary

RL INVESTMENT PROPERTIES LLP is currently experiencing significant financial strain, evidenced by a steep decline in net assets and minimal liquidity. While compliance with filing requirements remains intact, the company's financial "vital signs" suggest it is operating with a very thin margin of safety. Immediate actions to improve cash flow, strengthen equity, and control costs are essential to restore financial health and viability.

RL INVESTMENT PROPERTIES LLP - Analysis Report

Company Number: OC434256

Analysis Date: 2025-07-29 19:51 UTC

Financial Health Assessment for RL INVESTMENT PROPERTIES LLP

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1. Financial Health Score: D

Explanation:
The company shows signs of very weak financial health. Net assets have significantly deteriorated from £2,623 as of August 2023 to just £188 as of March 2024. This steep decline in net assets, combined with minimal current assets and the presence of accruals and deferred income, indicates symptoms of financial strain. While the company remains active and compliant with filing deadlines, its capital base is critically low, signaling potential distress.

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2. Key Vital Signs

Metric	31 March 2024	Interpretation
Current Assets	£1,688	Very low liquidity; minimal cash or receivables available.
Net Current Assets	£1,688	Positive but minimal working capital; borderline healthy cash flow.
Total Assets Less Current Liabilities	£1,688	Indicates total net assets available after short-term debts.
Net Assets (Equity)	£188	Dangerously low shareholder/member equity; indicates near insolvency.
Accruals and Deferred Income	-£1,500	Significant liabilities booked but not yet paid; pressure on cash flow.
Loan and Other Debts due to Members (Within 1 Year)	£300	Short-term member loans exist, possibly to support liquidity.
Members' Other Interests	-£112	Negative figure; could suggest losses or adjustments reducing equity.

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3. Diagnosis

RL INVESTMENT PROPERTIES LLP is displaying "symptoms of financial distress." The sharp decline in net assets over a short period suggests either operational losses, asset write-downs, or increased liabilities. The company’s current assets are minimal, which reflects a fragile liquidity position—akin to a patient with low blood pressure and weak pulse, indicating poor circulation of cash to meet immediate obligations.

The presence of accruals and deferred income at £1,500 reduces the net asset base, showing that the company has obligations or income recognized but not yet realized as cash inflow. The low equity base signifies that the business has little buffer to absorb shocks or losses and may struggle to raise finance or invest in growth.

The company is still compliant with filing deadlines and has no overdue accounts, which is a positive sign of regulatory health. However, the financial statements indicate the company is operating on very tight margins and limited resources.

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4. Recommendations

• Improve Liquidity: The LLP should focus on increasing current assets, particularly cash or receivables, to ensure it can meet short-term liabilities comfortably. This could involve accelerating debtor collections or negotiating better payment terms with suppliers.

• Strengthen Equity Base: Consider injections of capital from members or external investors to bolster net assets, providing a financial cushion to absorb future losses or invest in growth.

• Cost Control and Profitability: Carefully review operational costs and identify areas to reduce expenses. Improving profitability will help rebuild reserves and improve net assets.

• Monitor Accruals and Deferred Income: These non-cash liabilities/income should be closely monitored to ensure they do not become cash flow burdens unexpectedly.

• Regular Financial Monitoring: Implement regular (e.g., monthly) financial reviews to detect early warning signs of distress and respond promptly.

• Seek Professional Advice: If financial distress deepens, consider consultation with insolvency professionals or financial advisors to explore restructuring options.

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