RUBI COAL HOMES LTD

Executive Summary

Rubi Coal Homes Ltd is a newly incorporated micro-entity operating in real estate with significant solvency and liquidity risks at its first financial year end, reflected by negative net assets and substantial current liabilities exceeding current assets. While currently compliant with filing requirements, the financial position suggests careful monitoring and further due diligence are essential to assess business viability and risk mitigation plans. Investor caution is advised given limited operating history and early-stage financial challenges.

RUBI COAL HOMES LTD - Analysis Report

Company Number: 14801713

Analysis Date: 2025-07-29 15:56 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency risk, evidenced by negative net assets and substantial current liabilities exceeding current assets. The micro-entity status and very recent incorporation limit available financial history, increasing uncertainty.

2. Key Concerns:

• Negative Net Assets: The balance sheet shows net liabilities of £42,889, indicating the company’s liabilities exceed its assets.
• Poor Working Capital Position: Current liabilities are £292,467 versus current assets of only £8,251, resulting in a net current liability of £284,216, which raises liquidity concerns.
• Early Stage Financials: Incorporated in April 2023, with only one accounting period filed, limiting visibility on operational sustainability and cash flow trends.

3. Positive Indicators:

• Compliance: The company is active with no overdue filings for accounts or confirmation statements, indicating good regulatory compliance so far.
• Directors and Control: Two directors with clear ownership and voting rights control the company, suggesting centralized decision-making.
• Fixed Assets Base: The company holds fixed assets valued at £339,765, which may represent property or investment assets relevant to its real estate activities.

4. Due Diligence Notes:

• Investigate the nature and terms of current liabilities, especially those due within one year, to assess repayment risk or refinancing plans.
• Clarify the composition and valuation of fixed assets to understand if they can be liquidated or leveraged to improve solvency.
• Review business plan and cash flow forecasts to evaluate operational sustainability and steps management is taking to address negative equity.
• Confirm there are no director disqualifications or governance issues, though none are indicated currently.
• Monitor follow-up filings and seek updated financials to track progress beyond the initial period.