ROFFS RACEWEAR LIMITED

Executive Summary

Roffs Racewear Limited exhibits a moderate risk profile primarily due to ongoing liquidity challenges evidenced by negative net current assets, despite maintaining solvency on a total asset basis. The company complies with regulatory requirements and shows ownership stability, but limited financial disclosures constrain a comprehensive risk assessment. Further inquiry into cash flow management and asset utilization is advised to clarify operational sustainability.

ROFFS RACEWEAR LIMITED - Analysis Report

Company Number: 13295832

Analysis Date: 2025-07-29 17:40 UTC

1. Risk Rating: MEDIUM
   The company shows signs of financial strain indicated by persistent negative net current assets (working capital deficits) over recent years, although it remains solvent on a total asset basis. The micro-entity status limits detailed financial disclosures, constraining full risk evaluation.

2. Key Concerns:

• Negative Working Capital: The company reported net current liabilities of £3,050 as of March 2024, worsening from prior years, signaling potential liquidity pressures to meet short-term obligations.
• Declining Fixed Assets: Fixed assets decreased from £15,082 in 2023 to £7,706 in 2024, which may indicate asset disposals or underinvestment impacting operational capacity.
• Limited Financial Transparency: As a micro-entity, minimal disclosures restrict insight into profitability, cash flows, and contingent liabilities, increasing assessment uncertainty.

3. Positive Indicators:

• Solvency Position: Total assets less current liabilities remain positive (£4,656 in 2024), indicating the company’s total assets exceed its short-term liabilities.
• Timely Filings: No overdue accounts or confirmation statements and no signs of regulatory non-compliance; filings are current and complete.
• Ownership Stability: Control is concentrated with a primary shareholder/director with significant voting rights, which may support decisive management and strategic consistency.

4. Due Diligence Notes:

• Investigate the causes of persistent negative working capital and whether the company has adequate cash flow arrangements or credit facilities to manage short-term liabilities.
• Clarify the reason behind the decline in fixed assets: asset sales, impairment, or lack of reinvestment, and assess impact on operational capacity.
• Obtain management accounts or cash flow statements if available, to better understand operational performance and liquidity beyond balance sheet snapshots.
• Confirm no contingent liabilities or off-balance sheet exposures exist that could affect solvency.
• Review the impact, if any, of the recent company name change on business continuity or contracts.