RW MEMORABILIA LTD

Executive Summary

RW Memorabilia Ltd is a start-up micro-entity with limited financial history but positive net current assets. The company’s small capital base and minimal liquidity suggest cautious credit exposure. Approval is recommended for low-value facilities with close monitoring of operating cash flow and business development.

RW MEMORABILIA LTD - Analysis Report

Company Number: 15627441

Analysis Date: 2025-07-29 12:41 UTC

1. Credit Opinion: APPROVE with caution. RW Memorabilia Ltd is a newly incorporated micro-entity with minimal financial history, showing modest net assets (£809) and positive net current assets (£1,109). The company operates in retail via internet/mail order, a sector with moderate risk but potential for growth. Given the absence of employees and limited operational scale, credit exposure should be conservative. The director holds full control, suggesting clear decision-making but also concentration risk. Approval is suitable for low-value credit facilities with ongoing monitoring.

2. Financial Strength: The balance sheet reflects a very small capital base and limited assets. Net assets of £809 indicate a minimal buffer against liabilities, and the presence of accruals/deferred income (£400) slightly reduces net asset availability. No fixed assets are reported, and current assets are mainly cash or equivalents. The business is in its first year, so no historic profitability or retained earnings exist. The financial position is fragile but not unusual for a start-up micro-business.

3. Cash Flow Assessment: Current assets exceed current liabilities by £1,109, indicating positive working capital. However, the absolute value is low, providing little liquidity cushion. No employees or payroll liabilities reduce cash outflow pressure initially. The company likely relies on owner funding or short-term credit to cover operating expenses. Cash flow adequacy for debt servicing cannot yet be judged definitively; monitoring actual trading cash flows is essential.

4. Monitoring Points:

• Track revenue growth and profitability once trading is established.
• Monitor working capital trends and cash flow from operations.
• Watch for additional capital injections or external financing.
• Assess director’s ongoing involvement and any changes in ownership or control.
• Review compliance with filing deadlines and any changes in business scale or sector risks.