Company Number: 13816674

Analysis Date: 2025-07-29 16:43 UTC

1. Credit Opinion: APPROVE
   RH Power Limited demonstrates a stable and improving financial position with positive net assets and working capital growth. As a micro entity with consistent filings and no overdue returns, the company appears well-managed. The director has full control and shows responsibility in compliance. Given the modest size and low employee count, credit exposure should be limited to amounts proportional to their scale. Overall, the company shows capability to meet short-term obligations and service credit facilities.

2. Financial Strength:
   The balance sheet shows net assets increased from £39.7k in 2022 to £52.8k in 2023, indicating equity growth. Fixed assets are modest (£27k) relative to current assets (£74.8k), supporting liquidity. Current liabilities at £48.9k are comfortably covered by current assets, producing net current assets of £26.1k, up from £9.7k the prior year. The company’s capital and reserves fully support its obligations with no indications of insolvency risk.

3. Cash Flow Assessment:
   Liquidity is adequate with positive working capital improving by 169% year-on-year. The increase in current assets and controlled current liabilities suggest effective cash and operational management. The small scale (one employee) limits overhead risks, and no audit exemptions indicate transparency. However, the micro scale means cash flow buffers are modest; monitoring is warranted if credit facilities increase.

4. Monitoring Points:

• Track net current assets and liquidity ratios for any material decline.
• Monitor timely filing of accounts and confirmation statements to maintain compliance.
• Review any changes in director or PSC status given sole control by Xxxxxx Xxxxxxxxname shown to subscribers.
• Assess business growth or diversification beyond current electricity distribution to reduce concentration risk.
• Watch for changes in liabilities that could pressure working capital.