Company Number: 13911301

Analysis Date: 2025-07-20 17:00 UTC

1. Risk Rating: MEDIUM

Justification: The company is relatively new (incorporated 2022) and classified as a small private limited company engaged in fund management activities. It shows net liabilities and shareholders’ deficit at the latest year-end, indicating negative equity. However, it benefits from group financial support and a corporate guarantee covering preference shares. The going concern assumption is explicitly supported by the directors based on group backing, but reliance on intra-group funding introduces some risk.

2. Key Concerns:

• Negative Net Assets: The company reported net liabilities of £13,247 as of 30 September 2023 and a shareholders’ deficit of £13,347, which may reflect accumulated losses or financing structure issues.
• Dependence on Group Support: The financial statements confirm the company relies on funding and guarantees from group entities to continue operations, which presents a risk if group support were withdrawn.
• Redeemable Preference Shares Liability: The company has issued £162,002 of preference shares classified as financial liabilities, with cumulative dividends accruing and a redemption obligation that may pressure future cash flows.

3. Positive Indicators:

• No Overdue Filings: Both accounts and confirmation statements are up to date, indicating compliance with regulatory requirements.
• Auditor’s Report Unqualified: The audit opinion is unqualified, providing assurance on the financial statement integrity.
• Growing Debtors (Intercompany Receivables): Debtors increased significantly from £100 to £154,905, reflecting amounts owed by group undertakings, which may support liquidity.

4. Due Diligence Notes:

• Examine Group Financial Health: Since the company depends heavily on group support, review the financial statements and liquidity position of the parent and related group companies (RST Group Holdings Limited and RST Residential Investments Limited).
• Understand Terms of Preference Shares: Investigate the redemption terms, dividend obligations, and any covenants related to the £162k preference shares liability.
• Assess Cash Flow and Funding Stability: Request details on the timing and certainty of intra-group funding and the company’s cash flow forecasts to verify going concern assumptions.