Company Number: SC769973

Analysis Date: 2025-07-20 14:50 UTC

1. Credit Opinion: APPROVE (with caution) Rock River Research Ltd is a newly incorporated micro-entity (since May 2023) operating in business and domestic software development. The company has filed its first set of accounts timely and shows positive net assets and working capital. Given its micro size and short trading history, the credit risk is moderate but manageable. The directors hold significant control and appear engaged. Approval for credit facilities can be considered, but limits should be conservative and collateral or personal guarantees recommended until a longer trading record is established.

2. Financial Strength: As at 5 April 2024, Rock River Research Ltd reported net assets of £7,533 and net current assets of £4,369. Fixed assets are minimal at £5,073, typical for a software development start-up. Current liabilities of £9,213 and accrued income/deferred income of £1,909 are well covered by current assets of £13,582, indicating a positive short-term liquidity position. Shareholders' funds equal net assets, reflecting no external debt. Overall, the balance sheet is healthy but modest, consistent with a micro-entity in its first year.

3. Cash Flow Assessment: The company’s current assets exceed current liabilities by £4,369, demonstrating positive working capital and short-term liquidity. There is no indication of bank borrowings or overdrafts, reducing financial risk. However, as a start-up with only one year of financials, cash flow stability is unproven. Close monitoring of cash generation from operations is advised. The small scale and limited fixed assets suggest limited capital expenditure requirements.

4. Monitoring Points:

• Revenue and profit growth in subsequent accounting periods to establish sustainable cash flow.
• Timely filing of accounts and confirmation statements to ensure compliance.
• Changes in working capital components, especially debtors and creditors.
• Any new borrowings or changes in capital structure.
• Directors’ conduct and credit behavior as the company grows.
• Market developments in software development sector impacting business resilience.