RT ADVANCED SCAFFOLDING LIMITED

Executive Summary

RT Advanced Scaffolding Limited demonstrates modest net asset growth but persistent working capital deficits, indicating liquidity risk. Conditional credit approval is recommended with close monitoring of cash flow and working capital metrics, given the company's micro scale and limited financial resilience. Risk mitigation via exposure limits and additional security is advised due to the company's limited operational scale and financial transparency.

RT ADVANCED SCAFFOLDING LIMITED - Analysis Report

Company Number: 13264208

Analysis Date: 2025-07-20 17:46 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   RT Advanced Scaffolding Limited is a very small, micro-entity operating in scaffold erection with limited financial history, incorporated in 2021. The company shows improving net asset value and moderate asset base but consistently negative net current assets (working capital deficit) which indicates short-term liquidity risk. The absence of audit and minimal employee base (1 director only) suggest limited scale and possibly constrained operational capacity. Credit approval should be conditional on close monitoring of cash flows and receivables management, with limits on exposure and possibly requiring personal guarantees or collateral given the working capital weakness.

2. Financial Strength:
   The balance sheet shows fixed assets reducing from £75.2k in 2021 to £48.7k in 2024, which may reflect asset disposals or depreciation. Current assets remain low (~£3.7k), while current liabilities have decreased from £39.8k to £19.6k but still exceed current assets, resulting in net current liabilities of £15.8k in 2024 (improved from £39.8k in 2021). Net assets have improved from £22.9k in 2021 to £32.0k in 2024, indicating some equity growth, possibly from retained earnings or capital injection. The company holds no long-term liabilities as of 2024 (previously £7.5k in 2023). Overall, the balance sheet shows modest growth but persistent liquidity constraints.

3. Cash Flow Assessment:
   Negative net current assets indicate working capital deficits, suggesting reliance on external financing or delayed payments from customers. The small current asset base, primarily cash and receivables, is insufficient to cover short-term liabilities without additional funding. The company’s micro size and single director operation imply limited cash reserves and operational flexibility. Without audit or detailed cash flow statements, liquidity risk remains high, and the ability to meet short-term obligations depends heavily on timely cash inflows and management of payables.

4. Monitoring Points:

• Track quarterly management accounts focusing on working capital changes and cash flow adequacy.
• Monitor overdue trade payables and receivables aging reports.
• Watch for any increase in current liabilities or reduction in cash balances.
• Review director’s credit and financial standing periodically due to the company’s small size and reliance on one individual.
• Confirm timely filing of statutory accounts and confirmation statements to assess ongoing compliance and operational status.