ROCKWELL PROJECT MANAGEMENT LIMITED

Executive Summary

ROCKWELL PROJECT MANAGEMENT LIMITED demonstrates stable financial health with positive net assets and healthy working capital, though its low cash reserves and reliance on related party transactions suggest cautious liquidity management is required. Operationally lean and young, the company should focus on improving cash flow, diversifying management risk, and closely monitoring intercompany balances to sustain financial wellness. Overall, the company is currently financially sound but requires proactive steps to maintain its healthy status amid growth challenges.

ROCKWELL PROJECT MANAGEMENT LIMITED - Analysis Report

Company Number: 13448610

Analysis Date: 2025-07-29 12:59 UTC

Financial Health Assessment of ROCKWELL PROJECT MANAGEMENT LIMITED (as at 31 December 2024)

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1. Financial Health Score: B

Explanation:
The company exhibits generally sound financial health with positive net assets and working capital, indicating a stable balance between its short-term assets and liabilities. However, the reduction in debtors and cash balances compared to the previous year, along with a modest scale of operations (single employee), suggests cautious monitoring is warranted. The absence of an audit (exempt under small company rules) and limited profitability data constrains a full diagnostic, but overall the company shows no immediate financial distress.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Net Assets (Shareholders' Funds)	49,145	Positive net assets signal a healthy "financial heart," with assets exceeding liabilities.
Net Current Assets (Working Capital)	47,447	A healthy buffer indicating the company can cover its short-term obligations comfortably.
Tangible Fixed Assets (Net Book Value)	1,698	Small asset base consistent with service-oriented business; low risk of asset impairment.
Cash at Bank and in Hand	1,343	Low cash reserves, a "pulse" that is weak and warrants attention to liquidity management.
Debtors (Trade and Other Receivables)	77,909	Decreased from prior year, but still significant; reflects funds owed to the company.
Creditors (Amounts due within 1 year)	31,805	Manageable debts due soon; company's cash and receivables cover these liabilities.
Number of Employees	1	Lean operation; dependency on key personnel is high, which may impact operational resilience.
Related Party Balances	Debtors: 74,468, Creditors: 25,180	Significant intercompany balances; could pose risk if related parties face financial issues.

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3. Diagnosis: Financial Health Overview

• Liquidity & Working Capital: The company’s working capital is positive and stable (£47,447), indicating a "healthy circulation" of resources enabling it to meet short-term debts without strain. However, the very low cash balance (£1,343) is a symptom suggesting cash flow may be tight or irregular, potentially due to delays in collecting receivables or timing of payments.

• Asset Base & Capital Structure: The company holds minimal fixed assets, typical for a project management firm, and carries a net asset base of approximately £49k, supported entirely by retained earnings and share capital. This reflects a "stable skeleton" with no evidence of over-leverage or erosion of equity.

• Revenue & Profitability: Direct profit and loss details are not provided, but the increase in profit and loss reserves from £48,101 to £49,045 suggests modest profitability or retained earnings growth. The company is young (incorporated 2021) and operates in a competitive sector (building project development), so growth prospects depend on sustaining contracts and client relationships.

• Operational Efficiency: The reduction in debtors from £267k to £78k indicates improved collection or reduced sales volume. This "symptom" could mean better cash management or a contraction in business activity; further investigation into turnover trends is advisable.

• Governance & Risk: Management is concentrated with one active director and one resigned financial director, implying potential "single point of failure" risks. Related party transactions are significant, suggesting inter-company dependencies which could amplify financial stress if either party encounters difficulties.

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4. Recommendations

1. Enhance Cash Flow Management:
   The low cash balance signals the need for tighter control over cash inflows and outflows. Implementing more rigorous credit control, prompt invoicing, and possibly negotiating better payment terms with clients and suppliers ("strengthening the pulse") will improve liquidity.

2. Monitor Related Party Balances Carefully:
   Given the large intercompany receivables and payables, ensure these are regularly reviewed and settled promptly to avoid contagion of financial distress between affiliated businesses.

3. Diversify Operational Risk:
   With only one employee and a single active director, consider contingency planning and possibly hiring or delegating responsibilities to reduce reliance on key individuals ("improving systemic resilience").

4. Detailed Profit & Loss Review:
   Obtain or prepare a comprehensive income statement to monitor profitability trends, identify cost drivers, and detect early warning signs of margin pressure or operational inefficiencies.

5. Prepare for Growth & Scaling:
   If business expands, anticipate the need for enhanced financial reporting and possibly audited accounts to build stakeholder confidence and support funding applications.

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