RO M&D TRANSPORT LTD

Executive Summary

RO M&D TRANSPORT LTD is an early-stage transport company with modest financial resources and no immediate solvency issues but limited operating history. The company demonstrates statutory compliance and positive liquidity, yet its low equity and reliance on debt warrant close monitoring. Further due diligence on operational performance and management is advisable to better assess risk.

RO M&D TRANSPORT LTD - Analysis Report

Company Number: 15161680

Analysis Date: 2025-07-20 16:50 UTC

1. Risk Rating: MEDIUM
   RO M&D TRANSPORT LTD is a very recently incorporated company (September 2023) with limited financial history. The company reports modest net assets (£565) and positive net current assets (£6,565), indicating it currently meets short-term liabilities. However, the presence of £6,000 long-term bank loans relative to very low equity and cash balances (£8,413) suggests some leverage risk, typical for a startup. The company has complied with filing requirements and is not overdue on accounts or confirmation statements. Overall, the financials are early-stage but show no immediate solvency distress.

2. Key Concerns:

• Low equity base (£565) combined with bank loans (£6,000) indicates limited financial buffer to absorb losses or shocks.
• Very limited operating history and unaudited accounts restrict ability to assess profitability and cash flow sustainability.
• Reliance on a single director and 100% shareholder who is also the sole decision maker could pose governance and succession risks.

3. Positive Indicators:

• The company is fully compliant with statutory filing deadlines and has no overdue accounts or returns, indicating good governance discipline.
• Positive net current assets and cash on hand (£8,413) exceed current liabilities (£1,848), suggesting short-term liquidity is adequate.
• The company operates in transportation support and freight transport sectors, which have stable demand fundamentals.

4. Due Diligence Notes:

• Review detailed cash flow statements and profit and loss accounts (not delivered to Registrar) to evaluate operational cash generation and profitability.
• Assess terms and covenants of the £6,000 bank loan to understand repayment obligations and refinancing risk.
• Investigate director experience and track record, given sole control by Mr. Mihai-Silviu Batutu, to evaluate management capability and governance.
• Monitor any future filings for changes in equity, debt levels, or signs of financial stress as the company matures beyond its first year.