RPL ENGINEERING LTD

Executive Summary

RPL Engineering Ltd is an early-stage micro-entity with a modest but positive net asset and working capital position, sufficient to support limited credit exposure. The company’s limited operating history and small scale warrant cautious credit approval with conditions focused on regular monitoring. Ensuring ongoing liquidity and timely financial reporting will be critical to maintaining creditworthiness.

RPL ENGINEERING LTD - Analysis Report

Company Number: 15020272

Analysis Date: 2025-07-29 12:42 UTC

1. Credit Opinion: APPROVE with conditions. RPL Engineering Ltd is newly incorporated (2023) and classified as a micro-entity. The company has modest net assets (£4,837) and positive net current assets (£4,896), indicating a basic level of liquidity. The director is also the 100% shareholder, which can align interests but concentrates control. Given the limited operating history and small scale, the credit facility should be modest and contingent on ongoing monitoring of trading performance and cash flow. The absence of audit and profit/loss data restricts full financial assessment, so lending should be cautious and incremental.

2. Financial Strength: The balance sheet shows a small but positive net asset base with total current assets of £10,924 against current liabilities of £6,028. The net current assets position of £4,896 provides a buffer against short-term obligations. The company’s capital and reserves equal net assets of £4,837, which is consistent for a micro entity. There are no indications of long-term borrowings or fixed assets, which is typical at this stage. Overall, the financial strength is limited but stable for a startup micro-entity.

3. Cash Flow Assessment: Current assets largely consist of cash and receivables, supporting liquidity. The working capital is positive but modest, so cash flow management will be critical. There is no detailed cash flow statement, but the net current asset surplus suggests the company can meet short-term liabilities. However, as a new business with one employee, cash flow volatility risk is present. Close attention to debtor collections and creditor terms is recommended.

4. Monitoring Points:

• Quarterly review of cash flow and working capital levels.
• Timely filing of subsequent accounts and confirmation statements.
• Monitoring any changes in director or ownership structure.
• Tracking revenue growth and profitability once P&L data becomes available.
• Assessment of any new debt or credit facilities taken on.
• Watch for changes in payment behavior or overdue liabilities.