Company Number: 13164466

Analysis Date: 2025-07-29 21:00 UTC

1. Credit Opinion: DECLINE
   RSM INVPROP LTD shows persistent net liabilities and negative equity over the last three years, with net assets deteriorating to -£602 at 31 January 2024. The company holds significant long-term liabilities (£187,500) exceeding its fixed assets (£250,000) only marginally, and current liabilities remain high relative to current assets, leading to negative net current assets around -£63,000. The company's inability to generate positive equity and weak working capital position indicate limited capacity to service debt or absorb financial shocks. Given these financial weaknesses and a very small capital base (£1 share capital), the risk of default is elevated. There is no evidence of profitability or cash flow strength to support new credit facilities.

2. Financial Strength:
   The balance sheet is characterized by a relatively large fixed asset base (£250,000) presumably property-related, but this is funded predominantly through long-term creditors (£187,500) and current liabilities, with shareholders' funds being minimal and negative. Net current assets are negative, reflecting working capital deficits. The company’s micro-entity status limits the disclosure detail, but available data signals weak financial resilience and limited capital buffer. The negative net asset position suggests erosion of equity, potentially from accumulated losses or revaluation adjustments.

3. Cash Flow Assessment:
   Current assets are negligible (£274), consisting likely of minimal cash and receivables, while current liabilities are substantial (£63,376), resulting in a negative working capital position. This implies the company may face liquidity constraints and struggles to cover short-term obligations as they fall due. The lack of cash or liquid assets raises concerns about day-to-day operational funding and ability to meet creditor demands. No data on turnover or profitability is provided, but the balance sheet indicates fragile cash flow conditions.

4. Monitoring Points:

• Watch for improvements in net current assets and liquidity ratios to reduce short-term funding risks.
• Monitor any changes in fixed asset valuations or disposal that may affect asset backing.
• Track equity movements and shareholder funding injections to restore positive net assets.
• Review any changes in long-term liabilities structure and maturity profile to assess refinancing risk.
• Observe operational performance indicators (turnover, profit margins) when available to evaluate business viability.
• Keep an eye on director appointments and changes that might impact management quality and strategic direction.