Company Number: 13019851

Analysis Date: 2025-07-29 20:42 UTC

1. Credit Opinion: DECLINE
   Radsa Properties Ltd exhibits significant financial weakness with negative net assets of £4,294 as of 30 November 2024, continuing a trend of net liabilities since 2022. The company's current liabilities exceed its current assets by £94,654, indicating poor short-term liquidity and a strained ability to meet immediate obligations. The lack of working capital and very limited cash reserves (£4,161) raise concerns about its capacity to service debt or sustain operations without additional capital injection. The company operates solely in the real estate trading sector with no employees, suggesting limited operational scale or revenue-generating activity. Given the ongoing negative equity, absence of positive cash flow, and no sign of financial recovery over multiple years, extending credit would carry high risk.

2. Financial Strength:
   The balance sheet is heavily leveraged, with fixed tangible assets valued at £322,871 but offset by long-term creditors of £232,511 and current liabilities of £232,511. The net asset deficit reflects accumulated losses (£4,394 P&L reserve deficit). The company’s financial structure is fragile, showing no retained earnings and shareholder funds in negative territory. The absence of depreciation implies fixed assets may be land or investment properties held at cost, but there is no evidence that these assets generate income or cash flow. The company’s capital base is minimal (£100 share capital) and insufficient to absorb losses or support growth.

3. Cash Flow Assessment:
   Cash on hand is minimal (£4,161) and insufficient relative to current liabilities (£232,511), resulting in a negative working capital position of £94,654. The company does not appear to generate operating cash flow given no employees and no profit reported. The liquidity position is weak, and the company would likely require external financing or asset disposals to meet short-term obligations. The continued high current liabilities with no reduction indicate potential liquidity stress.

4. Monitoring Points:

• Track changes in net current assets to see if working capital improves.
• Monitor cash balances and cash flow statements when available for operational liquidity trends.
• Review creditor payments and any restructuring of liabilities.
• Evaluate any capital injections or asset disposals to strengthen the balance sheet.
• Watch for signs of increased revenue generation or business expansion.