ROCK AND PREROLL LTD

Executive Summary

ROCK AND PREROLL LTD shows a strong financial position with significant growth in net assets and liquidity over recent years, supporting its ability to meet debt obligations. The company’s micro-entity status and stable management indicate moderate risk but adequate creditworthiness for appropriately sized facilities. Continued monitoring of liquidity and governance is recommended to ensure ongoing financial health.

ROCK AND PREROLL LTD - Analysis Report

Company Number: 13052022

Analysis Date: 2025-07-19 12:26 UTC

1. Credit Opinion: APPROVE
   ROCK AND PREROLL LTD demonstrates strong financial stability and growth over the past three years, with net assets increasing from £2,348 in 2020 to £73,950 in 2023. The company maintains a healthy working capital position and has no overdue filings, indicating good management and compliance. Given its micro-entity classification and consistent asset growth, the company appears capable of servicing credit facilities. However, the limited scale and single director structure suggest a moderate risk profile typical of micro enterprises, so credit limits should be aligned accordingly.

2. Financial Strength:
   The balance sheet reveals a solid increase in net assets and shareholders’ funds, rising from £2,348 in 2020 to £73,950 in 2023, reflecting retained earnings and positive equity growth. Fixed assets remain low, consistent with a service-oriented business in advertising and online retail. The company’s liabilities are minimal and current liabilities have decreased from £10,854 in 2022 to £7,599 in 2023, enhancing solvency ratios. Overall, the capital structure is sound with no indication of over-leverage.

3. Cash Flow Assessment:
   Current assets have grown substantially to £78,768 in 2023, mainly cash or receivables, while current liabilities remain low, resulting in a strong net current asset position of £71,169. This healthy liquidity level suggests the company can comfortably cover short-term obligations and operational expenses. The working capital ratio (>10:1) is exceptionally strong for a micro entity, indicating no immediate cash flow concerns. However, the micro entity filing regime limits visibility on profitability and cash flow from operations.

4. Monitoring Points:

• Maintain scrutiny on cash conversion cycles as the company expands, particularly receivables and payables management.
• Monitor director conduct and any changes in ownership or control to assess governance risks.
• Watch for any increase in liabilities or deterioration in net current assets that could pressure liquidity.
• Confirm timely filing of accounts and confirmation statements continue to avoid regulatory penalties.
• Assess impact of market conditions on advertising and e-commerce sectors affecting revenue streams.