RST BALTIC WHARF INVESTMENTS LIMITED

Executive Summary

RST Baltic Wharf Investments Limited shows an improving but still fragile financial position, heavily reliant on group funding and intra-group debt. Credit approval is conditional on continued group support, with liquidity and leverage closely monitored. The company’s turnaround from negative equity is positive but modest, demanding cautious ongoing oversight.

RST BALTIC WHARF INVESTMENTS LIMITED - Analysis Report

Company Number: 13564557

Analysis Date: 2025-07-29 20:53 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   RST Baltic Wharf Investments Limited presents a credit profile that warrants cautious consideration. The company shows a positive turnaround with net assets improving from a negative £110 in 2022 to a modest positive £2,987 in 2023. However, the balance sheet reflects a substantial reliance on intra-group funding, including £397,449 classified as financial liabilities related to redeemable preference shares, supported by a corporate guarantee from a fellow group company. The going concern basis is explicitly dependent on continued group support, which introduces contingent risk. Therefore, credit approval is conditional on ongoing group backing and close monitoring of intercompany funding arrangements.

2. Financial Strength:
   The company’s financial strength is currently fragile but improving. Net current assets increased significantly to £400,436 in 2023 from £18,218 in 2022, primarily due to a large rise in debtors (£528,415 in 2023 vs. £21,000 in 2022), reflecting amounts owed by group undertakings (£338,419). Total net assets are minimal at £2,987, indicating very thin equity. The share capital is nominal (£384 issued preference shares at £1,000 each), but these are treated as financial liabilities, increasing leverage. The company’s balance sheet shows it is effectively funded by related party loans and preference shares rather than operational cash flow or retained earnings, which were negative until this year.

3. Cash Flow Assessment:
   Liquidity is limited with cash on hand at £17,345 as of 2023 year-end, down from £19,118 in 2022. The large debtor balance is mainly intercompany, which may not be readily collectible outside the group context. Current liabilities rose to £145,324, largely intra-group, but net current assets remain positive. The company’s ability to service external obligations depends heavily on group cash flow and capital injections. The absence of a detailed profit and loss statement or operational cash flow data restricts full assessment, but reliance on group support is evident.

4. Monitoring Points:

• Continued group financial support and any changes to intercompany loan terms or guarantees.
• Debtor ageing and collectability, especially amounts owed by group entities.
• Preference share redemption schedules and accrued dividends (£44,188 cumulative as of 2023).
• Timely filing of accounts and confirmation statements to ensure ongoing compliance.
• Any changes in group financial health that could impact support capability.
• Watch for improvements or deterioration in operational cash generation if data becomes available.