Company Number: 15169444

Analysis Date: 2025-07-20 18:08 UTC

1. Risk Rating: HIGH
   Rubicon Homes (Gorsey) Limited shows significant solvency risk due to net current liabilities and negative shareholders’ funds just six months after incorporation. The company depends heavily on intercompany loans, indicating limited independent liquidity.

2. Key Concerns:

• Negative Net Current Assets and Net Liabilities: The company’s current liabilities (£1,197,106) exceed current assets (£1,196,166) resulting in net current liabilities (-£940) and negative net assets (-£940), signaling a weak financial position.
• Dependence on Related Party Loans: The majority of liabilities (£1,188,466) are loans from the parent company, Rubicon Estates Limited, repayable on demand. This external reliance presents refinancing and liquidity risks if group support diminishes.
• Early Stage with Minimal Operational History: Incorporated in September 2023, with only a partial first year of trading, the company’s operational sustainability and cash flow generation remain unproven.

3. Positive Indicators:

• No Overdue Filings and Compliance: Accounts and confirmation statement are filed on time, showing good regulatory compliance so far.
• Backing by a Parent Group: 100% ownership and loan support from Rubicon Estates Limited may provide financial and operational support.
• Small Number of Employees (2): Low staffing levels suggest limited fixed overheads, which could be advantageous for controlling costs during initial development phases.

4. Due Diligence Notes:

• Investigate the terms, interest rates, and repayment expectations of the intercompany loans to assess refinancing risk and likelihood of continued support.
• Review the parent company’s financial strength and strategic plans related to the subsidiary to understand group-level risk exposure.
• Obtain detailed budgets and cash flow forecasts to evaluate how the company plans to achieve operational sustainability and repay liabilities.
• Verify the nature and valuation basis of inventories (£1,195,948) as they constitute nearly all current assets, critical for liquidity assessment.
• Monitor director changes and governance practices given the recent resignation of one director within a year of incorporation.