RPC GROUP HOLDINGS LTD

Executive Summary

RPC Group Holdings Ltd is a recently incorporated private holding company with a marginally negative net asset position but a strong cash balance relative to liabilities. While current regulatory compliance is satisfactory, the company’s lack of operational activity and significant intercompany creditor exposure present solvency and liquidity risks. Further investigation into intercompany transactions and strategic plans is recommended to assess future stability.

RPC GROUP HOLDINGS LTD - Analysis Report

Company Number: 14934430

Analysis Date: 2025-07-29 20:34 UTC

1. Risk Rating: HIGH
   The company exhibits signs of financial fragility, with net current liabilities and net assets slightly negative despite holding considerable cash. Its status as a newly incorporated holding company with minimal equity and no employees presents elevated risk from a solvency and operational perspective.

2. Key Concerns:

• Negative Net Current Assets and Shareholders’ Funds: The company shows net current liabilities of £179 and net assets of negative £179, indicating a marginal insolvency position at the balance sheet date.
• Substantial Amount Owed to Group Undertakings: £100,000 is owed to group undertakings, representing a significant creditor exposure that could pressure liquidity if repayment is demanded.
• Lack of Operational Activity: The company has no employees and minimal fixed assets, suggesting it is currently a non-operational holding entity without active revenue generation, which limits its ability to self-sustain.

3. Positive Indicators:

• Healthy Cash Balance: The company holds £100,001 in cash, which exceeds current liabilities by a small margin, providing some liquidity buffer.
• Up-to-date Filings and Compliance: All accounts and confirmation statements have been filed on time with no overdue notices, indicating good regulatory compliance.
• Sole Director with Full Control: Mr. Mujeeb Ul Rehman holds 75-100% ownership and voting rights, facilitating streamlined decision-making.

4. Due Diligence Notes:

• Clarify the nature and terms of the £100,000 owed to group undertakings: is this a loan, intercompany creditor, or accrued liability? Assess repayment terms and impact on cash flows.
• Investigate business plan and operational model to understand how the company intends to generate revenue or support its group activities.
• Review director background and any related-party transactions to evaluate governance and potential conflicts of interest.
• Monitor future accounts for changes in equity, asset base, and profitability to assess development from start-up phase.