RSD PROPERTIES LIMITED

Executive Summary

RSD PROPERTIES LIMITED is a newly established property trading company with modest net assets and significant current liabilities creating a moderate risk profile. While regulatory compliance is sound and ownership clear, liquidity and stock valuation present key concerns for investors. Further due diligence on cash flow management and property inventory is recommended to better gauge operational stability and solvency prospects.

RSD PROPERTIES LIMITED - Analysis Report

Company Number: 15735358

Analysis Date: 2025-07-29 20:02 UTC

1. Risk Rating: MEDIUM
   Justification: The company is newly incorporated (May 2024) with a very limited operating history, modest net current assets (£22,773), and a balance sheet dominated by stock (£274,071) and significant short-term liabilities (£330,746). While it is solvent on a net asset basis, the low equity base, short trading history, and high current liabilities relative to cash and equity suggest moderate risk.

2. Key Concerns:

• Liquidity Pressure: The company’s cash reserves (£79,448) are considerably lower than current liabilities (£330,746), indicating potential cash flow constraints requiring timely property sales or additional funding to meet obligations.
• Stock Valuation and Realisability: A large proportion of current assets are property stocks (£274,071), which are subject to market risk, valuation uncertainty, and potential impairment, especially given the company’s short trading period.
• Limited Operating History: Incorporated less than a year ago with no reported turnover or profit and loss details disclosed, making assessment of operational stability and profitability difficult.

3. Positive Indicators:

• Compliance and Governance: Accounts and confirmation statement are filed on time with no overdue filings, indicating good regulatory compliance despite short history.
• Clear Ownership and Control: Ownership is transparent with a single corporate PSC holding majority shares and control, alongside two named directors, which can aid decision-making efficiency.
• Conservative Accounting Policy: The company applies small company accounting standards with appropriate impairment reviews on stock, reflecting prudent financial management.

4. Due Diligence Notes:

• Investigate sources of financing and cash flow projections to understand how the company plans to meet significant current liabilities given limited cash.
• Review property stock composition, valuation methods, and sales pipeline to assess risk of impairment or liquidity issues related to inventory.
• Obtain management accounts or forecasts to evaluate initial trading performance and operational viability beyond the first accounting period.
• Confirm any related party transactions or intercompany loans, especially given the PSC is a corporate entity, to assess financial support or contingent liabilities.