ROCK REAL ESTATE LTD

Executive Summary

Rock Real Estate Ltd is a micro-entity operating in real estate agencies with positive net assets but recent deterioration in working capital, reflected by negative net current assets. The company is compliant with filing requirements and shows no governance red flags, but liquidity pressures warrant further investigation before considering investment. Overall, the company presents a medium risk profile largely due to short-term financial pressures rather than solvency concerns.

ROCK REAL ESTATE LTD - Analysis Report

Company Number: 13523848

Analysis Date: 2025-07-20 11:13 UTC

1. Risk Rating: MEDIUM
   The company shows signs of moderate financial stress due to negative net current assets in the latest financial year, indicating potential liquidity concerns. However, it maintains positive net assets and shareholders' funds, and there are no overdue filings or indications of insolvency proceedings.

2. Key Concerns:

• Negative Net Current Assets: As of 31 March 2024, current liabilities (£103,851) exceed current assets (£72,056), resulting in a net current liability position of (£31,795). This could signal short-term liquidity pressures.
• Decline in Working Capital: The company’s net current assets dropped significantly from £51,095 in 2023 to a negative £31,795 in 2024, indicating worsening working capital management or cash flow issues.
• Small Scale and Limited Financial Transparency: As a micro-entity with only two employees, the company has limited publicly disclosed financial detail and is unaudited, which restricts comprehensive risk assessment.

3. Positive Indicators:

• Positive Net Assets and Shareholders' Funds: Despite liquidity concerns, the company’s net assets remain positive at £48,112, suggesting overall solvency at the balance sheet date.
• No Overdue Filings: The company is current with its accounts and confirmation statement filings, indicating good regulatory compliance and governance.
• Stable Management and Ownership: Directors and persons with significant control have been consistent since incorporation, with no reported disqualifications or governance issues.

4. Due Diligence Notes:

• Investigate Causes of Negative Working Capital: Examine detailed cash flow statements and debtor/creditor ageing to understand the drivers behind increased current liabilities and declining liquidity.
• Review Contractual Obligations and Funding Sources: Determine if the company has access to short-term financing or credit facilities to manage current liabilities.
• Assess Profitability and Revenue Trends: Since limited financial data is available, confirm revenue generation capacity and profitability to evaluate operational sustainability.
• Confirm Directors’ Backgrounds and Related Party Transactions: Given the related control by directors and an investment company, review any related party balances or transactions that may impact financial stability.