Company Number: 13039919

Analysis Date: 2025-07-29 15:13 UTC

1. Credit Opinion: DECLINE
   Rocket Shakes Ltd demonstrates significant financial distress, reflected in persistent negative net assets and shareholders' funds for multiple years. Current liabilities substantially exceed current assets, resulting in severe working capital deficiencies and liquidity concerns. The company’s inability to generate positive net assets or cash reserves, coupled with a very small workforce, suggests limited operational scale and vulnerability. Without clear evidence of imminent financial turnaround or external support, credit extension poses high risk.

2. Financial Strength:
   The balance sheet reveals a deteriorating financial position. Net liabilities increased from approximately £135k (Nov 2021) to £177k (Mar 2023). Fixed assets are modest (£91k) and declining due to depreciation. Current liabilities remain substantial (~£262k), while current assets have plummeted from ~£100k to just over £10k, primarily tied up in debtors. Negative net current assets (-£251k) highlight poor liquidity and inability to cover short-term obligations. Deferred tax provisions (~£17k) add to liabilities.

3. Cash Flow Assessment:
   Cash on hand is critically low (£202), indicating near insolvency in liquid terms. High creditor balances versus minimal cash and slow debtor conversion suggest cash flow strain. The company’s working capital deficit undermines operational flexibility and debt servicing capacity. Absence of positive retained earnings and ongoing losses erode financial resilience.

4. Monitoring Points:

• Improvement in net current assets and cash position
• Reduction in current liabilities or restructuring of debts
• Turnaround in profitability and positive retained earnings
• Stability or growth in debtor collections and turnover
• Management actions to inject equity or improve cash flow