ROCKETEER ARTIFICIAL INTELLIGENCE LIMITED

Executive Summary

Rocketeer Artificial Intelligence Limited is currently facing significant financial distress characterized by negative equity and working capital deficits, reflecting ongoing losses and liquidity challenges. Immediate actions focusing on cash flow improvement, capital injection, and operational efficiency are critical to avoid insolvency and stabilize the business. Without intervention, the company’s financial condition may deteriorate further, threatening its viability.

ROCKETEER ARTIFICIAL INTELLIGENCE LIMITED - Analysis Report

Company Number: 12423783

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

Financial Health Assessment: Rocketeer Artificial Intelligence Limited

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1. Financial Health Score: D

Explanation:
The company shows persistent negative shareholders' funds and net current liabilities over multiple years, indicating ongoing financial distress. While it remains active and compliant with filing requirements, the balance sheet "vital signs" reveal a company struggling with solvency and liquidity issues. The absence of significant assets and increasing liabilities are symptoms of financial strain, warranting a below-average grade.

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2. Key Vital Signs

Metric	2024 (£)	Interpretation
Debtors (Current Assets)	0	No receivables or cash inflows recorded—sign of cash flow issues.
Current Liabilities	1,441	Small but increasing short-term debts, likely unpaid bills or loans.
Net Current Assets (Working Capital)	-1,441	Negative working capital indicates lack of liquid resources to cover short-term obligations.
Total Assets Less Current Liabilities	-1,441	Company owes more than it owns, implying insolvency on a balance sheet basis.
Shareholders' Funds (Equity)	-1,541	Negative equity means accumulated losses exceed invested capital—a critical warning sign.
Share Capital	100	Minimal share capital, limited buffer to absorb losses.

Interpretation:

• Negative working capital is akin to a patient who has no immediate reserves of energy (cash) to meet urgent demands (bills), indicating liquidity distress.
• Negative shareholders’ funds reflect accumulated losses that have eroded the company’s net worth — a chronic condition signaling insolvency risk.
• Zero debtors suggest the company is not generating or collecting revenue, a symptom of operational difficulties or minimal trading activity.
• Increasing current liabilities with no asset growth point to worsening financial health.

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3. Diagnosis

Rocketeer Artificial Intelligence Limited is exhibiting clear symptoms of financial distress. Over five years, the company’s net current assets and shareholders’ funds have remained negative and deteriorated, indicating the business is consistently spending more than it earns or lacks sufficient capital injections. The lack of current assets such as receivables or cash suggests that the company may not be generating sustainable revenue or is unable to collect payments effectively.

The increasing current liabilities without offsetting assets resemble a patient with a chronic illness that is not improving, requiring urgent intervention. Although the company remains legally active and compliant with filings, the financial statements reveal a precarious condition that could lead to insolvency if not addressed.

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4. Recommendations

To improve financial wellness and stabilize the company, the following actions are advised:

1. Cash Flow Management:

   • Prioritize generating or collecting cash inflows immediately. This may require renegotiating payment terms with customers or accelerating invoicing.
   • Reduce discretionary expenses to conserve cash.

2. Capital Injection:

   • Seek additional equity funding or loans from shareholders or external investors to replenish negative equity and provide a working capital buffer.
   • Consider issuing new shares or obtaining loans on favourable terms.

3. Cost Control and Operational Review:

   • Conduct a detailed review of business operations to identify non-essential costs and inefficiencies.
   • Explore opportunities for increased revenue generation or pivoting business strategy if current operations are unprofitable.

4. Creditor Negotiations:

   • Engage with creditors to restructure or defer short-term liabilities to ease liquidity pressures.
   • Establish a payment plan that aligns with cash flow capabilities.

5. Financial Monitoring:

   • Implement regular financial reporting and monitoring to detect early signs of distress and act promptly.
   • Consider consulting a financial advisor for restructuring advice.

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Medical Analogy Summary:

The company’s financial "vital signs" reveal a patient with a weak pulse—negative working capital and shareholders’ funds indicate the body (business) is under severe strain, lacking the resources to meet immediate demands. Without intervention, the prognosis is poor. However, with prompt "treatment" such as capital infusion and cash flow management, recovery is possible.

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