RMPC LIMITED

Executive Summary

RMPC LIMITED demonstrates a stable and improving financial position with healthy liquidity and growing equity, characteristic of a micro-entity in early growth stages. While current financial "vital signs" indicate soundness and no immediate distress, increasing capital, monitoring profitability, and enhancing reporting practices will strengthen its financial wellness and prepare the business for sustainable growth.

RMPC LIMITED - Analysis Report

Company Number: 13104584

Analysis Date: 2025-07-20 14:08 UTC

Certainly, let's conduct a thorough financial health assessment of RMPC LIMITED using the available financial data and company information.

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1. Financial Health Score: B

Explanation:
RMPC LIMITED shows a steady improvement in its net current assets and shareholders’ funds over the past four years, indicating a positive trend in liquidity and equity growth. The company maintains a healthy working capital position with net current assets consistently positive and growing. However, as a micro-entity with modest capital and limited financial complexity, the scale of operations is small, and the company carries some risk typical of early-stage businesses with limited capital buffers. The absence of audit and limited disclosures also restricts deeper insight into profitability and cash flow robustness.

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2. Key Vital Signs: Critical Metrics and Interpretation

Metric	2023	2022	2021	2020	Interpretation
Current Assets (£)	16,630	12,776	12,776	2,003	Increasing current assets suggests better liquidity.
Current Liabilities (£)	10,434	9,215	9,215	1,721	Liabilities increased but remain manageable.
Net Current Assets (£)	6,196	3,561	3,561	282	Positive working capital — "healthy cash flow" sign.
Net Assets / Equity (£)	6,196	3,561	3,561	282	Growing equity base indicates capital strength.
Share Capital (£)	1.00	1.00	1.00	1.00	Nominal capital; growth relies on retained earnings.
Average Employees	1	-	-	-	Small workforce consistent with micro-entity status.

Interpretation of Vital Signs:

• The company’s liquidity position is sound, with net current assets more than covering short-term liabilities, indicating a "healthy cash flow" environment and low immediate risk of insolvency.
• The steady increase in net assets and shareholders’ funds reflects retained earnings or capital injections, a positive "symptom" of financial strength.
• The micro company status and nominal share capital point to a small-scale operation, which can be vulnerable to external shocks but currently shows resilience.

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3. Diagnosis: Financial Condition Assessment

Overall Condition:
RMPC LIMITED appears financially stable with improving liquidity and equity over recent years. The company demonstrates a healthy balance between current assets and liabilities, suggesting it can meet short-term obligations comfortably. The modest scale and micro-entity status imply simplicity in operations with limited financial risk exposure. However, the absence of detailed profit and loss data or cash flow statements limits a full diagnosis of profitability and operational efficiency. The company is in the early stage of growth but shows no symptoms of financial distress such as negative working capital or shrinking equity.

Potential Concerns:

• The company relies heavily on retained earnings or small capital injections rather than significant share capital, which may limit growth potential.
• Lack of audit and limited financial disclosures typical of micro-entities means less transparency on profitability and cash flow quality.
• Being a single-employee entity, there is operational risk related to key person dependency.

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4. Recommendations: Specific Actions to Improve Financial Wellness

1. Profitability Monitoring:
   Initiate regular internal tracking of profit and cash flow metrics to complement balance sheet health, ensuring sustainable earnings beyond asset growth.

2. Capital Planning:
   Consider modest capital injections or alternative funding sources to build a stronger equity base, which can provide a buffer against unexpected expenses or growth investments.

3. Diversify Workforce:
   Evaluate the feasibility of expanding the team or outsourcing key functions to reduce dependency risk on a single individual.

4. Financial Reporting Enhancement:
   Although not mandatory, adopting more detailed financial reporting or periodic management accounts can provide earlier warning signs ("symptoms") of financial stress and support strategic decision-making.

5. Risk Management:
   Establish basic risk management practices, especially given the critical nature of the healthcare sector (SIC codes 86210 and 86101), to ensure compliance and operational resilience.

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