MY ROOM LTD

Executive Summary

My Room Ltd displays high financial risk characterized by ongoing negative equity and liquidity shortfalls. While compliant with statutory filings, the company’s substantial long-term liabilities and working capital deficit warrant closer examination of its debt obligations and operational viability. Additional financial disclosures are necessary to fully evaluate the company’s stability and prospects.

MY ROOM LTD - Analysis Report

Company Number: 13881021

Analysis Date: 2025-07-20 12:53 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks due to persistent negative net assets, negative working capital, and substantial long-term liabilities exceeding total assets. These factors indicate potential challenges in meeting financial obligations.

2. Key Concerns:

• Negative Shareholders’ Funds: The company’s net assets remain negative (£-14,754 as of 31 January 2024), signaling accumulated losses or excess liabilities over assets.
• Negative Net Current Assets: The company shows a working capital deficit (£-48,104), which raises liquidity concerns regarding the ability to cover short-term liabilities.
• Significant Long-Term Liabilities: Creditors falling due after more than one year stand at £248,725, surpassing total fixed assets (£283,613), which may indicate heavy borrowing or obligations that could strain cash flows.

3. Positive Indicators:

• Active Status with Timely Filings: The company is active with no overdue accounts or confirmation statements, suggesting compliance with Companies House filing requirements.
• Stability in Fixed Assets: Fixed assets have remained relatively stable (£283,613 in 2024 versus £282,418 in prior years), indicating consistent investment or ownership of tangible assets.
• Single Director and PSC Alignment: One director who is also the sole person with significant control may facilitate streamlined decision-making.

4. Due Diligence Notes:

• Clarify Nature and Terms of Long-Term Liabilities: Investigate the composition and repayment terms of the £248,725 creditors due after more than one year to assess refinancing or default risk.
• Examine Cash Flow and Profit & Loss Details: Absence of profit and loss data limits assessment of operational performance; request full P&L accounts and cash flow statements.
• Review Business Model Viability: Given the negative equity and working capital, assess how the company plans to sustain operations and service its debts, including any external financial support or restructuring plans.
• Director’s Background and Related Party Transactions: Evaluate potential related party transactions given the director’s occupation as landlord, which may affect financials or risk profile.

Executive Summary:
My Room Ltd is a micro-entity real estate management company with persistent negative net assets and working capital deficits, indicating elevated financial risk. Despite compliance with filing obligations and stable fixed assets, the significant long-term liabilities and lack of profit information present concerns regarding liquidity and solvency. Further financial details and clarity on debt structure are critical for a comprehensive risk assessment.