ROE PRODUCTIONS LIMITED

Executive Summary

ROE Productions Limited has experienced a sharp deterioration in financial position over its short trading history, with negative working capital and minimal net assets as of April 2024. Liquidity constraints and the absence of trade debtors raise concerns about its ability to meet current obligations. Consequently, the company is not recommended for new credit facilities without significant improvement or additional collateral.

ROE PRODUCTIONS LIMITED - Analysis Report

Company Number: 14041627

Analysis Date: 2025-07-29 12:10 UTC

1. Credit Opinion: DECLINE
   ROE Productions Limited demonstrates significant financial distress as of the latest accounts dated 30 April 2024. The company has moved from a strong net asset position (£39,251 in 2023) to a marginal net asset position (£492 in 2024) with negative net current assets (-£9,456), indicating potential liquidity issues. The steep reduction in current assets, particularly the complete disappearance of trade debtors (£39,800 in 2023 to £0 in 2024), coupled with increased current liabilities, undermines confidence in the company’s ability to meet short-term obligations. No audit has been performed, limiting assurance on the accuracy of reported figures. Given these factors and the company’s short trading history (incorporated 2022), the credit risk is elevated and approval for new credit facilities is not recommended at this stage.

2. Financial Strength: Weakening Balance Sheet
   The company’s fixed assets remain relatively stable (£12,281 in 2024 vs £13,529 in 2023), but current asset erosion is concerning. The cash balance has fallen by 50% (£4,318 vs £8,632), and trade debtors have been fully written off, suggesting either poor collection or cessation of sales on credit. Current liabilities remain substantial (£13,774), including significant tax and social security obligations (£12,592), which may indicate cash flow pressure. The drastic drop in shareholders’ funds from £39,251 to £492 reflects accumulated losses or provisions (£2,333 noted in 2024). This fragile equity base provides minimal cushion against operational or market shocks.

3. Cash Flow Assessment: Insufficient Liquidity
   The negative net current assets position and reduced cash reserves signal tight liquidity. The company may struggle to cover immediate liabilities, risking payment delays or defaults. Absence of trade debtors reduces receivable inflows, placing more reliance on cash or external financing. The increased tax liabilities further exacerbate short-term cash demands. Working capital management appears weak, and there is no evidence of strong cash generation or buildup from operations.

4. Monitoring Points:

• Track cash balances monthly and monitor any further depletion.
• Review creditor aging and adherence to payment terms to avoid supplier disputes.
• Monitor tax obligations and ensure timely settlement to prevent penalties.
• Watch for any significant changes in trade debtor activity or recovery efforts.
• Assess any strategic changes or capital injections by the controlling director to bolster financial health.