REBELLION DEVELOPMENTS LIMITED
Company number 02770940 · Monitor this company
This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.
Risk Rating: LOW
Justification: Based on the available filings, Rebellion Developments Limited maintains a strong balance sheet with net assets of £91.5m as at 30 June 2025, consistent profitability, up-to-date statutory filings, and audited accounts. The company is active, not in insolvency proceedings, and holds a substantial asset base relative to recorded liabilities. Liquidity timing around the July 2026 banking facility expiry and revenue dependence on game release cycles warrant monitoring but do not, on the current evidence, elevate the overall solvency risk beyond low.
Key Concerns
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Banking facility expiry and refinancing dependency: The accounts state that group banking facilities expire in July 2026, with an option to extend for 12 months. Going concern disclosures indicate reliance on the ultimate parent company’s commitment to provide financial support, and on renewal or extension of the facilities. Failure to secure renewal could create liquidity pressure despite the company’s net asset position.
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Revenue volatility linked to release cycle: Turnover fluctuates materially with game releases—£48.4m in 2023 (a year with no releases) versus £71.8m in 2025 following three releases. Gross profit fell 22% in 2025 despite revenue growth, reflecting higher amortisation on released titles. This cycle introduces earnings unpredictability.
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Related party concentration and parental support: The accounts state that trade is conducted mainly with related parties, and the going concern assumption is supported by the ultimate parent company’s commitment to provide necessary financial support. Concentration of receivables within the group and dependence on parental backing are factors for investor scrutiny.
Positive Indicators
- Strengthening balance sheet: Net assets increased from £67.9m (2022) to £91.5m (2025), with shareholders’ funds matching net assets.
- Consistent profitability: Profit before tax was approximately £11.4m in both 2024 and 2025, after tax profit of £7.6m in 2025.
- Statutory compliance: Annual accounts and confirmation statement filings are not overdue; the company is active with no insolvency proceedings.
- Audited accounts: Financial statements are audited by a registered auditor (James Cowper Kreston Audit).
- Established operating history: Incorporated in 1992, with a substantial asset base of £133.7m against total liabilities of approximately £40.1m.
- Cash position: Cash of £5.6m at 30 June 2025, up from £2.6m in the prior year.
Due Diligence Notes
- Review the terms, covenants, security, and renewal mechanics of the banking facility expiring July 2026, including the 12-month extension option.
- Examine related party debtor balances, payment terms, and any intra-group guarantees or cross-default provisions.
- Assess the carrying value, useful economic lives, and amortisation policy for capitalised development costs, given £33.8m of capital expenditure in 2025.
- Obtain details of the ultimate parent company’s financial support commitment, including duration, enforceability, and any caps or conditions.
- Review trade debtor ageing and concentration outside the related party group.
- Check Companies House for any charges or mortgages registered against company assets.