Company Number: 13454223

Analysis Date: 2025-07-20 18:16 UTC

1. Credit Opinion: DECLINE. RWB Auctions Limited shows a significant deterioration in financial position over the last year, moving from positive net assets of £100 in 2023 to a substantial net deficit of £249,572 in 2024. The company’s current liabilities exceed current assets by £256,031, indicating severe liquidity stress. This level of negative working capital and shareholders’ funds suggests an inability to meet short-term obligations without external support. Given the micro-entity status and limited financial information, the risk of non-repayment or default on credit facilities is high.

2. Financial Strength: The balance sheet is weak with very low fixed assets (£6,359) and current assets (£112,938) insufficient to cover current liabilities (£368,969). The company’s net assets are negative, indicating that total liabilities exceed total assets. The capital base has eroded dramatically within a year, reflecting either losses or unrecorded liabilities. The company has grown headcount from 2 to 12 employees in the past year, which may have increased operational costs but is not yet reflected in improved asset or equity positions. Overall, the financial strength is inadequate for extending credit without significant collateral or guarantees.

3. Cash Flow Assessment: Negative net current assets of £256,031 imply working capital deficiency and potential cash flow difficulties in meeting short-term debts. Without further cash flow statements or profitability data, it is reasonable to infer liquidity constraints. The absence of audit and reliance on micro-entity reporting limits visibility, but the substantial overdraft or creditor balances suggest ongoing cash flow management issues. The company’s capacity to generate sufficient operating cash flow to service debt is questionable.

4. Monitoring Points:

• Track reductions in current liabilities and improvements in net current assets.
• Monitor trading performance and profitability to assess if losses are being stemmed.
• Watch any material changes in cash balances and creditor terms.
• Review director and shareholder financial support or capital injections.
• Observe compliance with filing deadlines and any changes in company status or director appointments.