RNC CONSULTANCY LTD.

Executive Summary

RNC Consultancy Ltd. displays a solid financial position with strong liquidity and a growing equity base, underpinned by positive cash flow and low liabilities. The company is well-positioned to service credit facilities with low risk of default. Continued monitoring of tax obligations and cash flow sustainability is recommended to maintain credit quality.

RNC CONSULTANCY LTD. - Analysis Report

Company Number: 13575845

Analysis Date: 2025-07-29 20:49 UTC

1. Credit Opinion: APPROVE
   RNC Consultancy Ltd. demonstrates strong liquidity and an improving financial position, with net current assets increasing significantly from £7.6k in 2023 to £68k in 2024. The company is active, compliant with filing deadlines, and shows no signs of distress or adverse director conduct. Its simple capital structure and positive retained earnings indicate sound financial stewardship by management. Given the company's positive cash position and low liabilities, it appears capable of meeting debt obligations.

2. Financial Strength:
   The company’s balance sheet is healthy for its micro-entity status. Net assets grew from £7.6k to £68k year-on-year, driven entirely by an increase in cash reserves from £8.3k to £85.9k. There are no fixed assets reported, which is typical for a consultancy business. Current liabilities remain low at £17.9k and mainly include corporation tax, trade creditors, and a small director’s loan account. Shareholders’ funds increased substantially due to accumulated profits, indicating retained earnings are being built despite the company being only a few years old.

3. Cash Flow Assessment:
   Liquidity is strong, with cash and current assets comfortably exceeding current liabilities by a ratio of approximately 4.8:1 in 2024. This provides a good buffer for working capital needs and short-term debt servicing. The significant increase in cash suggests positive operational cash flow or possibly capital injection, enhancing the company’s ability to meet obligations without liquidity strain. There are no indications of over-reliance on director loans or external borrowing.

4. Monitoring Points:

• Maintain scrutiny on corporation tax liabilities (£16,677 in 2024) to ensure payments are timely and do not strain cash resources.
• Monitor continued cash flow generation, especially since no fixed assets or inventory exist to support business continuity.
• Observe any significant changes in trade creditors or director’s loan accounts for potential liquidity impact.
• Monitor turnover and profitability trends through future filings to ensure the recent cash increase is sustainable.