RN TRADERS LTD

Executive Summary

RN TRADERS LTD, a newly incorporated micro-entity in the take-away food sector, exhibits a concerning liquidity position with current liabilities significantly exceeding current assets. While compliant with statutory filing requirements, the company’s low net asset base and sole director governance highlight elevated financial and operational risks. Further detailed financial data and operational insights are essential to properly evaluate its sustainability and risk profile.

RN TRADERS LTD - Analysis Report

Company Number: SC745645

Analysis Date: 2025-07-29 16:09 UTC

1. Risk Rating: HIGH
   The company shows significant liquidity concerns with current liabilities exceeding current assets by £11,864, indicating an inability to meet short-term obligations as at the last financial year-end. Net assets are low at £1,336, reflecting a weak capital base for operational sustainability in its first full year.

2. Key Concerns:

• Negative net current assets position (-£11,864) signals cash flow and solvency pressures.
• Micro-entity status with minimal financial disclosures limits visibility into profitability or cash generation.
• Single director and sole shareholder concentration may pose governance and operational risk.

3. Positive Indicators:

• The company is compliant with filing deadlines, with no overdue accounts or confirmation statements.
• Business operates in the take-away food sector, which can generate quick cash flow if managed well.
• Limited fixed assets (£13,200) suggest a low overhead base, potentially aiding flexibility.

4. Due Diligence Notes:

• Obtain detailed profit & loss information and cash flow statements to assess operational performance and liquidity trends.
• Investigate the nature and timing of current liabilities to understand if they are trade payables or short-term borrowings.
• Clarify the business model and customer base to evaluate sustainability in a competitive sector.
• Review the director’s background for experience and capacity to manage financial risks given single-person control.