Company Number: 14717780

Analysis Date: 2025-07-29 17:52 UTC

1. Risk Rating: LOW
   The company shows solid net asset growth, positive working capital, and no overdue filings. Despite being newly incorporated in 2023, its financial position as of 2024 year-end indicates a stable solvency profile with substantial equity backing.

2. Key Concerns:

• Significant increase in creditors falling due after one year (£114k) in 2024 compared to none in prior year; nature and terms of this long-term liability need scrutiny to assess refinancing or covenant risk.
• Relatively high current liabilities (£26k) compared to prior year, although net current assets remain healthy; close monitoring of cash flow and creditor payment terms is advisable.
• Business is in a niche sector (interactive software development) with inherent operational and market risk; sustainability depends on ongoing innovation and client retention not visible from current data.

3. Positive Indicators:

• Net assets have increased substantially from £54k in 2023 to £179k in 2024, demonstrating strong capital accumulation and profitability or capital injection.
• Net current assets improved markedly to £250k, reflecting good short-term liquidity and ability to cover immediate liabilities.
• No overdue filings or compliance issues reported; company appears well managed with timely statutory submissions.
• Employment growth from 4 to 11 staff suggests expansion and operational scaling.

4. Due Diligence Notes:

• Investigate the terms and conditions of long-term creditors liability of £114k recorded in 2024 to evaluate repayment schedules and interest obligations.
• Review cash flow statements (not provided) to confirm liquidity adequacy given increased liabilities.
• Assess the relationship and control dynamics with the parent entity Red Rover Interactive Limited, which holds 75-100% ownership and voting rights.
• Verify the sustainability of revenue streams and client contracts supporting the current operational scale and asset base.
• Confirm that no director disqualifications or governance issues exist beyond what is publicly disclosed.