ROKKI SEARCH LTD

Executive Summary

Rokki Search Ltd demonstrates a rapidly improving financial position with positive working capital and net assets within two years of incorporation. The company’s micro size and single director ownership present limited but manageable credit risk. Approval for modest credit facilities is recommended, with ongoing monitoring of liquidity, profitability, and sector conditions to ensure sustained repayment capability.

ROKKI SEARCH LTD - Analysis Report

Company Number: 14627975

Analysis Date: 2025-07-29 19:33 UTC

1. Credit Opinion: APPROVE with monitoring. Rokki Search Ltd is a micro-entity with limited trading history but shows a strong improvement in financial position from the prior year. The company has moved from negative net current assets and near zero net equity to positive working capital and a net asset base exceeding £31k within two years of incorporation. The single director who is also the 100% shareholder demonstrates committed control. Given the small scale and early stage, credit exposure should be conservative and monitored closely, but current data supports credit approval for modest facilities.

2. Financial Strength: The balance sheet shows significant strengthening between 2024 and 2025. Fixed assets increased modestly from £2,791 to £7,011, while current assets rose from £80,484 to £105,081. Current liabilities reduced slightly, improving net current assets from a negative £2,148 to a positive £25,199. Net assets and shareholders’ funds increased dramatically from £1 to £31,568. This growth indicates successful capital injection or retained earnings accumulation, improving solvency and financial resilience for a micro company.

3. Cash Flow Assessment: Current assets relative to current liabilities indicate adequate short-term liquidity. Positive net current assets of £25,199 provide a buffer to meet short-term obligations. The company’s working capital position improved markedly compared to the prior year, reducing liquidity risk. The single employee/director structure suggests low fixed overheads, supporting cash flow stability. However, as a small and young business, cash flow volatility risk remains and should be reviewed regularly.

4. Monitoring Points:

• Continued improvement or maintenance of positive net current assets to ensure liquidity.
• Trends in turnover and profitability once available to assess ongoing debt servicing capability.
• Any increase in current liabilities that might strain working capital.
• Director’s ability to maintain sound financial management and compliance with filing deadlines.
• External economic conditions impacting employment placement agency sector (SIC 78109).