Company Number: 13459098

Analysis Date: 2025-07-29 14:18 UTC

1. Risk Rating: MEDIUM

Justification: Rustler Motor Yachts Ltd shows a solid asset base with significant fixed assets and positive net assets, indicating some financial strength. However, the company has persistent net current liabilities, with a notably increased working capital deficit at the 2023 year-end (£235k negative) compared to 2022 (£29k negative). This raises liquidity concerns. The presence of interest-free shareholder loans repayable on demand adds uncertainty to short-term cash flow stability. No overdue filings or status flags mitigate regulatory risk.

2. Key Concerns:

• Liquidity strain due to substantial net current liabilities, which worsened significantly in 2023, suggesting potential challenges in meeting short-term obligations without relying on shareholder support.
• Dependence on shareholder loans (£300k total) that are interest-free and repayable on demand, which may be called upon unexpectedly, impacting cash flow.
• Related party transactions with Rustler Yachts Ltd and Falmouth Maritime Ltd indicate operational interdependence; scrutiny of these transactions is needed to assess risk exposure and transfer pricing fairness.

3. Positive Indicators:

• Solid net assets of £437k as at December 2023, supported by tangible and intangible fixed assets, reflecting investment in business infrastructure and development.
• Directors’ confirmation of going concern status supported by shareholder loans not requiring repayment until sufficient available funds exist.
• No overdue accounts or confirmation statements; the company complies with statutory filing requirements, supporting governance standards.

4. Due Diligence Notes:

• Review detailed cash flow statements and management forecasts to assess the company's ability to manage current liabilities and convert assets to cash.
• Investigate the terms, security, and enforceability of the shareholder loans and the likelihood of these being called on short notice.
• Assess related party transactions for arm’s length nature and any dependency risks, including the financial health of Rustler Yachts Ltd and Falmouth Maritime Ltd.
• Confirm the sustainability of turnover and profitability trends, as profit and loss details were not included in the filing.
• Evaluate lease obligations and any contingent liabilities not disclosed in the accounts that could impact liquidity.