RPG FINANCIAL LIMITED
Company number 05245973 · Monitor this company
This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.
Credit Analysis: RPG Financial Limited
1. Credit Opinion: DECLINE
Reasoning: RPG Financial Limited is now classified as a Dormant Company (SIC 99999) with no significant financial transactions. The company's website confirms retirement of the RPG Financial brand effective 29 February 2024, with operations transitioning to "Perspective (RPG Financial)." A dormant entity has no revenue generation capability to service new debt obligations. Any credit facility extended to this vehicle would lack a trading cash flow source for repayment.
For existing obligations or group-related exposures, the balance sheet remains solvent, but new lending should be directed to the active trading entity within the PFM Group structure.
2. Financial Strength
Balance Sheet Position (as at 31 December 2022):
| Metric | 2022 | 2021 | Movement |
|---|---|---|---|
| Total Assets | £940,650 | £987,642 | -4.8% |
| Net Assets | £659,254 | £543,493 | +21.3% |
| Shareholders' Funds | £659,254 | £543,493 | +21.3% |
| Cash | £422,203 | £337,772 | +25.0% |
Key Observations: - Net assets improved year-on-year by £115,761, indicating the 2022 trading period was profitable before dormancy - Goodwill of £300,000 (carrying value) represents 32% of total assets — this is being amortised over 20 years from an original cost of £2,000,000, with £1,700,000 already amortised/impairred - Tangible assets of £81,626 are modest, reflecting the service-based nature of the business - P&L reserves grew from £543,489 to £656,253, confirming retained profitability - Share capital remains minimal at £3,000
Concern: The significant goodwill write-down over time (from £2M cost to £300k carrying value) raises questions about historical acquisition performance, though this may reflect conservative impairment accounting.
3. Cash Flow Assessment
Liquidity Position:
| Metric | 2022 | 2021 |
|---|---|---|
| Current Assets | £559,024 | £491,295 |
| Current Liabilities | £197,327 | £221,682 |
| Net Current Assets | £361,697 | £269,613 |
| Current Ratio | 2.83x | 2.22x |
| Cash/Current Liabilities | 2.14x | 1.52x |
Working Capital Analysis: - Current ratio of 2.83x is healthy — the company can meet short-term obligations comfortably - Cash alone covers current liabilities more than twice over - Trade debtors of £101,972 are reasonable but should be monitored for collectability given the dormancy status - Current liabilities include £158,332 in taxation and social security, suggesting profitable operations in the final trading period
Long-term Liabilities: - Creditors falling due after one year decreased significantly from £204,346 to £68,712 - Bank loans of £127,500 in 2021 appear to have been repaid (nil in 2022) - £68,712 of long-term creditors are secured, down from £204,346
Cash Generation Trajectory:
| Year | Cash | Net Assets |
|---|---|---|
| 2019 | £357,394 | £862,063 |
| 2020 | £404,775 | £815,281 |
| 2021 | £337,772 | £543,493 |
| 2022 | £422,203 | £659,254 |
Cash has been volatile but remains substantial. The 2021 dip in net assets (with a corresponding drop in cash) warrants investigation — potentially a dividend extraction or impairment charge.
4. Monitoring Points
| Risk Area | Metric to Watch | Rationale |
|---|---|---|
| Dormancy Status | Confirmation of no trading activity | Company is now dormant — any resumption of trading requires reassessment |
| Group Structure | PFM Group Limited financial health | Ultimate controlling party owns 75%+ — group support or contingent liabilities may be relevant |
| Goodwill Impairment | Carrying value vs recoverable amount | £300k remaining goodwill may require further write-down if business is wound up |
| Debtor Collection | Trade debtor ageing | £101,972 trade debtors may become difficult to collect post-dormancy |
| Tax Liabilities | £158k taxation/social security | Ensure HMRC obligations are satisfied before any asset distribution |
| Rebranding Completion | Legal entity status | Transition to "Perspective" brand may involve asset transfers requiring monitoring |
| Long-term Creditors | £68,712 secured creditors | Understand nature of security and repayment terms |
Additional Considerations: - The company had 10 employees in 2022 (up from 8 in 2021) — confirm whether staff have been transferred to another group entity or made redundant - Directors (Dilks, Garner, Pink) hold 25-50% each individually — significant personal stakes suggest alignment of interests, but also potential for dividend extraction - Operating lease commitments exist but are truncated in the filed accounts — request full details