RSH PROPERTIES (NORTH) LTD

Executive Summary

RSH Properties (North) Ltd demonstrates significant solvency and liquidity concerns, evidenced by worsening negative net assets and working capital deficits over recent years. Despite compliance with filing requirements and growth in fixed assets, these financial pressures pose a high risk to operational stability. Detailed due diligence on cash flow management, debt obligations, and asset valuation is essential to fully assess the company's financial health and prospects.

RSH PROPERTIES (NORTH) LTD - Analysis Report

Company Number: 13799938

Analysis Date: 2025-07-29 17:37 UTC

1. Risk Rating: HIGH

The company exhibits significant solvency and liquidity concerns, with net liabilities worsening over the last two years. The negative shareholders' funds and working capital deficits indicate elevated financial risk.

2. Key Concerns:

• Negative Net Assets: The company had net liabilities of £60,661 as of 31 December 2023, deteriorating from a net liability position of £14,483 in the previous year. This indicates the company is insolvent on a balance sheet basis.

• Working Capital Deficit: Current liabilities exceed current assets by £557,076 (2023), worsening from a deficit of £385,808 a year earlier. This suggests the company may struggle to meet short-term obligations as they fall due.

• Reliance on a Single Director and Shareholder: Steven Higgins is the sole director and 75-100% shareholder, which may raise governance and operational continuity risks if circumstances change.

3. Positive Indicators:

• Active Status and No Overdue Filings: The company is active and compliant with its filing obligations, with accounts and confirmation statements filed on time.

• Asset Base Growth: Fixed assets increased from £372,525 to £497,615 over the last year, indicating some investment or acquisition of property assets consistent with the real estate business.

• Micro Entity Filing Simplification: The company’s micro-entity status reduces administrative burden, which might help focus resources on operational matters.

4. Due Diligence Notes:

• Cash Flow and Payment Practices: Investigate cash flow statements or bank records to understand how the company is managing liquidity given the working capital deficit.

• Nature and Valuation of Fixed Assets: Clarify the composition and market value of fixed assets (£497,615) to assess whether they are readily realizable or impaired.

• Debt Structure and Creditors: Review the terms, maturity, and counterparties of current liabilities (£1,083,687) to evaluate solvency risk and potential refinancing needs.

• Director’s Financial Support and Plans: Confirm if the director or related parties provide financial support, and understand any plans to restore equity or improve financial health.

• Profitability and Revenue Trends: Obtain profit and loss details, if available, to assess operational sustainability beyond balance sheet analysis.

• Contingent Liabilities or Related Party Transactions: Check for any off-balance sheet risks or related party dealings that may affect financial stability.

Executive Summary:
RSH Properties (North) Ltd faces high financial risk characterized by negative net assets and significant working capital deficits. While the company maintains compliance with statutory filings and has increased fixed assets, its solvency and liquidity challenges could impair its ability to meet obligations without external support or operational improvements. Further inquiry into cash flow, debt structure, and asset realizability is recommended to clarify the company’s viability outlook.