RUKEVWE LTD

Executive Summary

RUKEVWE LTD is a recently established micro-entity with insufficient financial strength and negative net assets, indicating poor capitalisation and weak liquidity. The company’s minimal working capital and negative equity profile present a high credit risk. Credit facilities are not recommended under current conditions without significant improvement in financial position or additional security.

RUKEVWE LTD - Analysis Report

Company Number: 14303145

Analysis Date: 2025-07-29 16:43 UTC

1. Credit Opinion: DECLINE
   RUKEVWE LTD presents a weak financial profile that raises significant credit concerns. The company’s net current assets are positive but minimal (£10), with current liabilities (£2,528) slightly exceeding current assets (£1), indicating tight liquidity. More concerning is the negative net assets and shareholders' funds position of -£420, suggesting accumulated losses or creditors exceeding equity. This negative equity position undermines the company’s financial resilience and ability to service any debt. Given these factors and the company’s very recent incorporation (2022), there is insufficient evidence of operational stability or profitability to support credit extension.

2. Financial Strength:
   The balance sheet shows fixed assets of £2,098, which are minimal and likely not easily liquidated to cover liabilities. The company’s current assets of £1 and prepayments of £9 are negligible relative to creditors. Total net assets are negative at -£420, indicating insolvency from an accounting standpoint. This negative equity is a critical red flag. The company has only one employee, consistent with micro-entity status, and limited operational scale. Without stronger asset backing or capital injection, financial strength is weak.

3. Cash Flow Assessment:
   Liquidity appears extremely constrained; current liabilities exceed current assets, and net current assets are only £10. This suggests very limited working capital to fund day-to-day operations or absorb financial shocks. The nominal cash or equivalents implied by current assets (£1) is insufficient to meet short-term obligations. No cash flow statement is provided, but given negative equity and low current assets, cash flow to service debt or repay loans is likely inadequate.

4. Monitoring Points:

• Monitor subsequent filings for improvements in net assets and liquidity ratios.
• Track operational cash flow generation and whether working capital improves.
• Watch for any capital injections or changes to ownership that could strengthen equity.
• Review any director’s reports or strategic updates for business growth or new contracts.
• Monitor payment behavior if credit is extended, given weak financial base.