RWF ENGINEERING LIMITED

Executive Summary

RWF ENGINEERING LIMITED exhibits significant financial stress characterized by negative net assets and declining working capital, coupled with ongoing operating losses. While regulatory compliance is maintained and the company operates in a specialized engineering niche, urgent attention is needed to address liquidity and solvency risks to ensure business continuity. Further due diligence on liabilities and the viability of its development projects is recommended before considering investment.

RWF ENGINEERING LIMITED - Analysis Report

Company Number: 13828294

Analysis Date: 2025-07-20 15:08 UTC

1. Risk Rating: HIGH
   The company shows sustained negative net assets and shareholders’ funds with deteriorating working capital, indicating a weak financial position and a risk of insolvency.

2. Key Concerns:

• Persistent negative net assets: Net assets declined from -£761 in 2023 to -£918 in 2024, reflecting an erosion of equity and a weak capital base.
• Negative net current assets: Working capital worsened to -£511 in 2024 from -£354 the prior year, suggesting liquidity stress and potential difficulty in meeting short-term obligations.
• Operating losses: The company reported consistent operating losses (-£156 in 2024 and -£761 previously) with no income growth, raising concerns about operational sustainability.

3. Positive Indicators:

• No overdue filings: Accounts and confirmation statements are up to date, indicating compliance with regulatory requirements.
• Active company status with a single director controlling 100% shareholding, which may simplify decision-making and strategic direction.
• Business focused on engineering design activities, a specialized sector that can have growth potential if operational issues are addressed.

4. Due Diligence Notes:

• Investigate the nature of the current liabilities and creditors to understand repayment terms and any restructuring plans.
• Review cash flow forecasts and management plans to address worsening liquidity and negative working capital.
• Assess the viability of the novel house building technology development referenced in the directors’ report, including potential commercialization timelines and funding sources.
• Confirm whether any off-balance sheet liabilities or contingent risks exist despite the statement of none disclosed.
• Monitor the director’s background and capacity for financial and operational management as the single controlling stakeholder.