Company Number: 13670917

Analysis Date: 2025-07-20 15:08 UTC

1. Credit Opinion: DECLINE
   R&N CONSULTANTS LTD shows negative net assets and shareholders’ funds in the latest financial year, indicating a deteriorated financial position. The company’s liabilities exceed its assets by £1,853 as of 31 October 2024, a worsening from a negative £5,694 the prior year (though the figures appear inconsistent and suggest possible data entry or presentation errors). This negative equity position and the ongoing net current liability situation raise concerns about the company’s ability to meet its short-term obligations reliably. Given the small scale and micro-entity status, coupled with a single director who also controls 75-100% of shares, the risk concentration is high. Without stronger capital or evidence of cash flow improvement, credit extension is not advisable at this stage.

2. Financial Strength:
   The balance sheet reflects a fragile position. Current assets stand at £12,427 against current liabilities of £14,280, resulting in negative net current assets. The reported net assets are negative £1,853, suggesting that total liabilities exceed total assets. The company remains a micro-entity with minimal fixed assets reported, and limited shareholders’ funds, further indicating weak capitalization. The accounts do not disclose long-term debt, but working capital is insufficient to cover short-term debts. The financial trajectory shows an increase in current liabilities and a decline in net assets over the reported period, highlighting a weakening balance sheet.

3. Cash Flow Assessment:
   The company employs just one person and has modest current assets, implying constrained liquidity. The negative net current asset position signals potential liquidity stress. Without detailed cash flow statements, we infer limited cash reserves and working capital to support ongoing operations or debt servicing. Rising current liabilities and insufficient current assets pose a risk of payment delays or defaults on trade or financial obligations. The absence of an audit and limited disclosure further obscure cash flow visibility.

4. Monitoring Points:

• Monitor quarterly cash flow and working capital developments to detect any liquidity improvements or further deterioration.
• Track changes in current liabilities and any new debt facilities taken on.
• Review management actions to strengthen equity or reduce liabilities.
• Observe director’s conduct and business developments given sole control and ownership concentration.
• Review subsequent filings for any restatements or changes in reported figures.