RUTLAND HOUSE FREEHOLD LIMITED

Executive Summary

Rutland House Freehold Limited displays a sound financial foundation with positive working capital and equity, characteristic of a healthy micro-entity in its start-up phase. The company’s liquidity position is stable, supported by deposits held for strategic property acquisition. To enhance future resilience, it is advisable to build reserves, diversify governance, and maintain strict compliance with filing obligations.

RUTLAND HOUSE FREEHOLD LIMITED - Analysis Report

Company Number: 14760794

Analysis Date: 2025-07-29 12:44 UTC

Financial Health Assessment for Rutland House Freehold Limited

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1. Financial Health Score: B

Explanation:
Rutland House Freehold Limited demonstrates a sound, stable financial footing for a micro-entity in its first year of operation. The company maintains positive net current assets and net assets, indicating a healthy liquidity position and capital structure. The absence of overdue filings and audit requirements reduces regulatory risk. However, the modest scale, limited financial history, and the concentration of control in one individual introduce some vulnerability and limit the scope of financial resilience.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	32,767	Adequate short-term resources available
Current Liabilities	26,275	Obligations due within a year, notably deposits held
Net Current Assets	6,492	Positive working capital — a healthy cash buffer
Total Assets Less Current Liabilities	6,492	Shows sufficient asset coverage over short-term debts
Net Assets	6,192	Equity base reflecting retained capital
Shareholders’ Funds	6,192	Owner’s equity aligns with net assets, indicating no hidden liabilities

Additional Notes:

• Deposits held (£26,275) are earmarked for purchasing freehold property and are classified as creditors, which inflates current liabilities but are matched by deposits held.
• Average number of employees is 1 (the director), reflecting a lean operational structure.
• The company is exempt from audit due to its micro-entity status, which is typical and acceptable for this size.

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3. Diagnosis: Financial Health Overview

Rutland House Freehold Limited exhibits the symptoms of a healthy start-up entity with a stable liquidity position and positive equity. The positive net current assets indicate a "healthy cash flow" environment in the short term, allowing the company to meet its immediate obligations without strain. The deposits held as creditors may appear as a symptom of liability pressure but are actually funds held in trust for a specific purchase, balancing out with current assets.

The concentration of ownership and control in a single director/shareholder, Mr. William Coleman, provides clear governance but introduces "risk of single point of failure" in management continuity and decision-making. The micro-entity size limits financial complexity and filing requirements, which reduces administrative burden but also means less comprehensive financial data is available for deeper analysis.

No symptoms of distress such as overdue accounts, audit qualifications, or negative equity are present. The company is current on filing obligations, indicating good compliance health.

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4. Recommendations: Strengthening Financial Wellness

• Build Financial Reserves: As the business grows, aim to increase net current assets and build a contingency reserve to buffer against unexpected cash flow interruptions or liabilities.
• Diversify Governance: Consider appointing additional directors or advisors to mitigate risks associated with single-person control and to enhance strategic oversight.
• Monitor Deposits and Liabilities: Keep clear records of deposits held and ensure timely acquisition of the freehold property to avoid prolonged liabilities and reconcile creditor balances.
• Plan for Growth: As the company grows beyond micro-entity thresholds, prepare for increased reporting and audit requirements by instituting robust accounting systems early.
• Maintain Compliance Vigilance: Continue timely filing of accounts and confirmation statements to avoid penalties and maintain good standing with Companies House.

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