Company Number: 14417112

Analysis Date: 2025-07-29 19:25 UTC

Financial Health Assessment Report for R.R SUPPLY & CO LTD

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1. Financial Health Score: B

Explanation:
R.R SUPPLY & CO LTD demonstrates a solid financial foundation for a micro-entity in its early years. The company shows improving net assets and working capital, indicating healthy liquidity and prudent management of short-term obligations. However, the absence of detailed profit and loss information and the relatively small scale of operations limit a higher grade. Overall, the financial "vital signs" suggest a business with stable but cautious financial wellness.

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2. Key Vital Signs

Metric	2024 Figure	Interpretation
Current Assets	£5,950	Cash and receivables available to meet short-term obligations.
Current Liabilities	£507	Short-term debts due within a year, relatively low compared to assets.
Net Current Assets (Working Capital)	£5,480	Strong positive working capital indicates good short-term financial health.
Creditors due after 1 year	£507	Long-term liabilities are modest and manageable.
Net Assets (Equity)	£4,973	Represents the company’s residual value after liabilities, showing growth from previous years.
Shareholders’ Funds	£4,973	Indicates owner’s investment and accumulated profits retained in business.
Average Number of Employees	2	Small operation, consistent with micro-entity status.
Profit & Loss Account	Not filed	No detailed profitability data publicly available, limiting full diagnosis.

Interpretation of Vital Signs:
The company maintains a "healthy cash flow" position with current assets far exceeding current liabilities, which is a positive symptom. The increase in net assets from £2,942 in 2023 to £4,973 in 2024 signals capital growth and retention of earnings or capital injections. Creditors due after more than a year are low, indicating limited long-term debt burden.

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3. Diagnosis

Underlying Business Health:
R.R SUPPLY & CO LTD appears to be in a financially stable condition typical of a young micro-entity. The company’s "financial pulse" is steady, with a strong liquidity position and growing equity. There are no indications of financial distress or over-leverage. The balance sheet is conservative, with limited liabilities and a focus on maintaining positive working capital.

Missing Information Symptom:
The absence of a profit and loss statement restricts a full understanding of operational profitability, cash generation from core business activities, and expense management. This is a common limitation for micro-entities using the micro-entity reporting framework, which allows omission of profit and loss accounts in public filings.

Risk Factors:

• Small scale of operations and limited asset base increase vulnerability to market shocks or unexpected expenses.
• Ownership concentration: The sole director and 100% shareholder is Mr. Rashid Rafiq, which means operational and financial decisions rest on a single individual. This can be both strength and risk, depending on management capability.

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4. Recommendations

To Maintain and Improve Financial Wellness:

1. Enhance Financial Transparency:
   Even though not required, consider voluntarily preparing a detailed profit and loss account internally. This will help management better understand profitability trends and cost drivers, enabling more informed decision-making.

2. Strengthen Cash Flow Monitoring:
   Maintain rigorous cash flow forecasting to preserve the "healthy liquidity" observed, especially given the micro size and potential vulnerability to external shocks.

3. Plan for Growth and Diversification:
   Explore opportunities to expand customer base or services offered to build resilience and increase asset base, which will improve the company’s financial "immune system."

4. Consider External Advice:
   Engage with financial advisors or accountants periodically to review financial strategy and compliance, ensuring the company adheres to all regulatory requirements and best practices.

5. Prepare for Long-Term Obligations:
   Given the presence of long-term creditors (£507), ensure that repayment schedules are manageable and do not compromise short-term liquidity.

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Executive Summary