Company Number: 13219714

Analysis Date: 2025-07-29 13:44 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Rocah Group Ltd shows a stable fixed asset base with incremental growth in property assets, indicating some business expansion or investment. However, the company’s current liabilities significantly exceed current assets, resulting in a negative net working capital position. This weak liquidity profile raises concerns about short-term repayment capacity. The sizeable directors’ loans and long-term bank debt require close monitoring. Given the company’s young age and modest equity base, credit approval should be conditional on obtaining further information on cash flow forecasts and plans to improve liquidity.

2. Financial Strength:
   The company holds tangible fixed assets valued at £348k, up from £309k last year, reflecting capital investment in real estate management activities. Net assets improved from £2,993 in 2023 to £6,199 in 2024 due to retained earnings, but total equity remains very low relative to total liabilities (£207k long-term bank loans and £139k current liabilities). The capital structure is heavily leveraged with minimal share capital (£1). Reliance on director loans (£138k current) suggests funding through related parties rather than external equity or operational cash flow.

3. Cash Flow Assessment:
   Current assets consist mainly of cash (£4.8k), with no reported receivables or inventory, and current liabilities total £139.6k, including director loans and accruals. Negative net current assets of £134.8k indicate strained liquidity and potential difficulty in meeting short-term obligations without refinancing or asset sales. The absence of reported turnover or employees implies limited operational cash inflows, increasing dependence on financing sources. The company’s ability to service its bank loan and director loans from operating cash flows is unproven.

4. Monitoring Points:

• Liquidity metrics (current ratio, quick ratio) to assess short-term payment capacity.
• Cash flow statements or forecasts to evaluate operational cash generation versus financing needs.
• Timely servicing of director loans and bank loans to avoid default risk.
• Trends in net assets and equity growth to gauge financial resilience.
• Any changes in ownership or director involvement that may affect control or funding.