Company Number: 13111570

Analysis Date: 2025-07-29 20:34 UTC

1. Credit Opinion: APPROVE
   Rubon Mechanical Services Limited demonstrates a strong and improving financial position with significant growth in net current assets and shareholders' funds over the last two years. The company is current on all filings and operational since incorporation in 2021. Management appears stable, with no director disqualifications or governance issues. The presence of a controlling shareholder holding 75-100% indicates stable ownership structure. The company’s liquidity and working capital position support its capacity to meet short-term obligations, making it creditworthy for lending or trade credit.

2. Financial Strength:
   The balance sheet shows healthy growth from 2022 to 2023:

• Shareholders’ funds increased from £131,937 to £400,735, indicating retained earnings growth and capital preservation.
• Net current assets rose substantially from £118,585 to £386,018, reflecting improved liquidity and working capital management.
• Fixed assets are modest (£14,717) relative to current assets, consistent with the company’s profile in plumbing and specialised construction activities.
• The company maintains a low share capital (£100), typical for private limited companies but with strong retained earnings backing net assets.
• No long-term debt reported, with director loans interest-free and repayable on demand, reducing financial risk.

3. Cash Flow Assessment:

• Cash balances increased significantly from £125,914 in 2022 to £318,102 in 2023, showing strong cash generation or injections.
• Debtors increased to £230,212, which is manageable given the growth in cash and overall current assets.
• Current liabilities rose but remain well covered by current assets, with a current ratio of approximately 3.17 (2023), indicating strong short-term liquidity.
• The company’s working capital position is robust, minimizing liquidity risk and supporting ongoing operations.

4. Monitoring Points:

• Keep watch on debtor days and credit control effectiveness to ensure receivables remain collectible and do not strain liquidity.
• Monitor growth in current liabilities, specifically taxation and social security obligations, to prevent any cash flow bottlenecks.
• Observe any changes in director loans or related party transactions that could affect the company’s financial flexibility.
• Track turnover and profit margins in future accounts to confirm continued business growth and resilience.
• Regularly review the company’s adherence to filing deadlines and governance standards.