RM PROPERTY DEVELOPERS LIMITED

Executive Summary

RM Property Developers Limited shows a strong financial position typical of a young, growing micro-entity with a solid asset base and positive working capital. The company demonstrates healthy balance sheet strength and low short-term liabilities, indicating financial stability and operational liquidity. To sustain growth, focus on cash flow management, profitability monitoring, and scalable operations is recommended.

RM PROPERTY DEVELOPERS LIMITED - Analysis Report

Company Number: 14527255

Analysis Date: 2025-07-29 13:42 UTC

Financial Health Assessment for RM PROPERTY DEVELOPERS LIMITED

---

1. Financial Health Score: B

Explanation:
RM Property Developers Limited demonstrates a solid and improving financial position typical of a young micro-entity. The company’s net assets have increased substantially year-over-year, reflecting growth in both fixed and current assets alongside controlled liabilities. While the business shows promising stability and adequate working capital, as a recent start-up with a small operational scale and limited revenue disclosure, there remains scope for strengthening cash flow management and operational efficiency to secure a top-tier score.

---

2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Fixed Assets	68,582	Significant investment in long-term assets indicating expansion or capital investment. Healthy sign of building operational capacity.
Current Assets	34,243	Adequate short-term resources to cover immediate obligations.
Current Liabilities	2,935	Low short-term debts, indicating manageable obligations and low liquidity risk.
Net Current Assets (Working Capital)	35,588	Strong positive working capital, a vital sign of healthy operational liquidity.
Total Assets Less Current Liabilities	104,170	Shows overall asset base after short-term debts, up substantially from prior years.
Net Assets (Shareholders’ Funds)	102,278	Equity base has grown nearly 7-fold from previous £14,870, signaling retained earnings or capital injections.
Employee Count	2	Small team size, typical of micro entities; manageable overhead but limited operational scale.

Interpretation:

• The healthy cash flow is suggested by strong net current assets and low liabilities, implying the company can meet short-term expenses without distress.
• The sharp increase in fixed assets suggests recent capital expenditure or property acquisition, typical in property development, a positive indicator of business growth and asset strengthening.
• Increasing shareholders’ funds reflect accumulation of profits or equity contributions, a vital "immune system" strengthening the business against financial shocks.
• The company remains small scale with limited employees, consistent with micro-entity classification, but this also suggests limited operational breadth and potential exposure to market fluctuations.

---

3. Diagnosis

RM Property Developers Limited exhibits signs of financial robustness for a young micro-entity. The company has successfully grown its asset base and equity within two years of incorporation, which is a strong symptom of business vitality and effective management of financial resources. The balance sheet shows no symptoms of distress such as negative working capital or high short-term debt.

The company’s liquidity position is strong, with current assets exceeding current liabilities by a wide margin, indicating a healthy cash flow position to manage ongoing expenses and potential project investments. The rise in fixed assets aligns with the company’s industry — construction installation — where capital assets are crucial.

Given the company’s age (incorporated December 2022) and micro category status, the absence of audit requirements and simplified accounts means less detailed financial disclosure, so some caution is warranted when assessing profitability and cash flow trends beyond balance sheet strength.

---

4. Recommendations

To further improve financial wellness and secure future stability, RM Property Developers Limited should consider:

1. Enhance Cash Flow Forecasting & Management:
   Although working capital is strong, property development projects can be capital intensive and cash flow volatile. Implementing robust cash flow models will help anticipate funding needs and avoid liquidity crunches.

2. Build Profitability Tracking:
   Set up regular internal profit and loss monitoring beyond statutory micro-entity provisions to understand operational margins and project viability better.

3. Plan for Growth Scale-Up:
   As assets grow, consider strategic hiring or partnerships to build operational capacity and manage increased project complexity.

4. Maintain Compliance and Timely Filings:
   Continue meeting filing deadlines to avoid penalties and maintain good standing with Companies House, which supports trust with suppliers and lenders.

5. Explore Funding Options:
   Given the capital intensive nature of property development, explore external funding sources (loans, equity) to fuel growth without over-leveraging short-term liabilities.

---