RUCHE CARE SERVICES LIMITED

Executive Summary

Ruche Care Services Limited is a newly formed micro enterprise with a modest profit and positive working capital, demonstrating initial ability to meet short-term liabilities. The company’s very limited scale and financial resources warrant conservative credit limits and close monitoring of cash flow and revenue development. Approval is recommended with cautious exposure until further trading history confirms business sustainability.

RUCHE CARE SERVICES LIMITED - Analysis Report

Company Number: 14459096

Analysis Date: 2025-07-29 12:32 UTC

1. Credit Opinion: APPROVE with caution. Ruche Care Services Limited is a micro entity operating in the human health activities sector with limited financial history, having been incorporated in late 2022. The company reported a modest profit for its first 13-month period and maintains positive net current assets, indicating initial capability to meet short-term obligations. However, the low turnover and minimal asset base restrict the company's ability to absorb shocks or scale quickly. Credit facilities should be conservatively sized and possibly secured or monitored closely until further trading history is established.

2. Financial Strength: The balance sheet shows total net assets of £404 at the last financial year-end, reflecting a very small equity base consistent with a micro-sized operation. Current assets of £415 exceed current liabilities of £11, resulting in net current assets of £404, a positive but minimal working capital buffer. The company does not hold fixed assets or significant reserves. Overall, the financial position is stable but very limited in scale, with no material asset backing.

3. Cash Flow Assessment: The company generated a small profit of £304 on turnover of £5,307, indicating tight margins and very low absolute cash inflows. Positive net current assets suggest sufficient liquidity to cover immediate liabilities, but the level of cash or equivalents is minimal (£415 current assets likely includes cash and receivables). Given the small scale and early stage of operations, cash flow volatility risk is elevated. Careful attention to receivables management and cash preservation will be critical in the near term.

4. Monitoring Points:

• Revenue growth and profitability trends over the next 1-2 reporting periods.
• Liquidity ratios, particularly current ratio and quick ratio as more data becomes available.
• Any increase in borrowings or creditor balances that may strain working capital.
• Management’s ability to control operating costs and maintain positive net assets.
• Director’s commitment and capability, considering sole ownership and single director structure.