RS AUTOMATION SERVICES LTD

Executive Summary

RS AUTOMATION SERVICES LTD presents a low financial risk profile with strong net current assets and timely compliance. However, limited cash reserves, concentrated ownership, and small operational scale warrant further review of liquidity and governance. Overall, the company appears financially stable but would benefit from deeper due diligence on receivables and operational sustainability.

RS AUTOMATION SERVICES LTD - Analysis Report

Company Number: 13993296

Analysis Date: 2025-07-20 17:19 UTC

1. Risk Rating: LOW
   RS AUTOMATION SERVICES LTD demonstrates a solid solvency position with net current assets well above current liabilities, positive shareholders’ funds, and no overdue filings. The company’s financials indicate stable working capital and no apparent liquidity stress.

2. Key Concerns:

• Limited Cash Reserves: Cash at bank is nominal (£277 in 2024), which may constrain day-to-day liquidity despite receivables being strong.
• Concentration Risk: Significant control and shareholding (75-100%) are held by a single individual, potentially impacting governance and strategic decisions.
• Small Scale Operations: With just one employee and minimal fixed assets disclosed, operational scalability and resilience to market changes could be limited.

3. Positive Indicators:

• Healthy Working Capital: Net current assets increased significantly from £14,711 in 2023 to £28,395 in 2024, indicating improved short-term financial health.
• No Filing or Compliance Issues: Accounts and confirmation statements are filed on time with no overdue notices or penalties.
• Consistent Profit Retention: The increase in profit and loss reserves suggests profitable operations or retained earnings growth.

4. Due Diligence Notes:

• Verify the nature and collectability of trade debtors (£31,892) to confirm liquidity reliability.
• Assess cash flow statements or bank transaction data (if available) to understand liquidity beyond balance sheet snapshots.
• Review governance practices given the high concentration of control in one PSC and the small board size.
• Investigate business model sustainability and market position given the micro-scale size and single employee count.
• Confirm any off-balance-sheet liabilities or contingent risks not disclosed in the unaudited accounts.