RT AUTOMATION LTD

Credit Opinion: CONDITIONAL

RT Automation Ltd is an active private limited company incorporated in 2017. The accounts state its principal activity is the supply and maintenance of electric gates. The company has built a strong balance sheet, with net assets increasing from a nominal amount at incorporation to £2,097,860 at 31 January 2026. Gearing is negligible, with only £2,422 of creditors due after more than one year, and all Companies House filings are current.

The accounts are filleted and unaudited under the small companies regime, so no profit and loss account is available to verify trading profitability or cash generation. Cash at bank is modest at £88,763 relative to £1,471,929 of stocks and £1,069,170 of debtors. Facilities should therefore be approved conditionally, subject to receipt of certified management accounts including a profit and loss account, appropriate security over company assets, and confirmation of stock valuation and debtor ageing.

Financial Strength

Balance sheet health is strong: - Net assets: £2,097,860 (2026), up from £1,691,662 (2025) and £149,489 (2020) - Shareholders’ funds: £2,097,860, entirely equity-funded - Tangible fixed assets: £34,796; the business is asset-light - Current liabilities: £564,376; long-term creditors: £2,422 - Net current assets: £2,065,486

Net assets have grown every year since 2020. The balance sheet is conservatively capitalised with no material external long-term borrowings.

Cash Flow Assessment

Liquidity is strong on a balance sheet basis: - Current ratio of approximately 4.7:1 (current assets £2,629,862 versus current liabilities £564,376) - Cash at bank: £88,763 (2026), up from £6,189 (2025) - Working capital: £2,065,486

Working capital is heavily concentrated in stock and debtors, which together represent about 97% of current assets. Cash conversion depends on collecting customer debts and turning over electric gate inventory. The increase in cash during 2026 is positive, but the absolute cash balance remains low relative to the operating cycle. No cash flow statement is provided in the filleted accounts.

Monitoring Points

• Quarterly management accounts, including profit and loss, to verify earnings capacity and debt service ability
• Debtor ageing and bad debt provisions, given £1.1m owed by customers
• Stock turnover and potential obsolescence of inventory
• Cash balance trend relative to monthly operating costs
• Any new hire purchase, lease, or long-term borrowing arrangements
• Continuing compliance with Companies House filing deadlines