Company Number: 13229994

Analysis Date: 2025-07-20 18:48 UTC

1. Risk Rating: MEDIUM
   While Rumah Estates Limited is currently active and compliant with filing deadlines, the financial metrics suggest moderate risk. The company shows very low net assets relative to significant long-term liabilities, indicating potential solvency pressures.

2. Key Concerns:

• High Long-Term Liabilities vs Equity: The company holds fixed assets of approximately £199.5k but has creditors due after more than one year of around £210.5k, marginally exceeding the fixed assets and resulting in minimal net equity (£3,816 in 2025). This raises concerns about the ability to cover these obligations if asset realizations are required.
• Negative or Minimal Profit Buffer: The net assets have improved slightly over the years but remain very low, showing limited retained earnings or capital cushion to absorb operational shocks or losses.
• No Employee Base and Limited Turnover Data: With zero employees reported and micro-entity accounting, there is limited financial transparency. The absence of a profit and loss account filed restricts insight into operational cash flows and profitability trends.

3. Positive Indicators:

• Timely and Compliant Filings: The company is up to date with accounts and confirmation statements, indicating good governance and regulatory compliance.
• Stable Fixed Asset Base: Fixed assets have remained steady at £199,544 over the years, suggesting some asset stability and potential operational consistency.
• Clear Ownership and Control Structure: Two directors with defined roles, and a PSC owning 75-100% shares, suggest centralized decision-making which may facilitate swift strategic actions.

4. Due Diligence Notes:

• Review the nature and valuation of fixed assets and whether they are sufficiently liquid to cover long-term liabilities in case of distress.
• Obtain or request access to profit and loss accounts or cash flow statements to assess operational performance and liquidity, given the micro-entity filings omit these details publicly.
• Investigate the terms and covenants attached to the long-term creditors to understand risk of default or refinancing challenges.
• Clarify the business model and revenue generation, since the SIC code (98000 - Residents property management) and zero employees imply possible outsourcing or asset holding rather than active operations.