ROMAX MEDIA LIMITED

Executive Summary

Romax Media Limited demonstrates modest financial stability with positive equity growth and sufficient working capital, supported by director funding. Given its micro size and short history, credit approval is conditional with close monitoring of liquidity and reliance on related party loans. The company currently appears capable of meeting short-term obligations but requires oversight to ensure sustainable cash flow and financial resilience.

ROMAX MEDIA LIMITED - Analysis Report

Company Number: 14062765

Analysis Date: 2025-07-29 16:51 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Romax Media Limited is a micro private limited company with a short operating history since incorporation in 2022. The company shows modest but positive net assets and shareholder equity growth over two years, indicating some financial stability. However, current liabilities have increased, and there is a relatively small asset base. The director has advanced interest-free loans to the company, which supports liquidity but also reflects reliance on related party funds. Given the limited financial scale and operating history, credit approval should be conditional on ongoing monitoring of working capital and cash flow stability, and possibly personal guarantees or security to mitigate risk.

2. Financial Strength:

• Fixed assets are minimal (£864 in 2024), indicating limited investment in long-term assets.
• Current assets are stable (~£30,256), mostly likely cash or receivables.
• Current liabilities rose from £2,099 in 2023 to £7,082 in 2024, increasing short-term financial obligations.
• Shareholders’ funds increased from £8,846 to £17,463, showing retained earnings or capital injection.
• Provisions for liabilities decreased from £17,767 to £5,182, improving balance sheet clarity.
  Overall, the balance sheet is small but shows gradual strengthening equity, with working capital positive but somewhat constrained.

3. Cash Flow Assessment:

• Net current assets approximate £23,174 (£30,256 current assets minus £7,082 current liabilities), indicating the company can cover short-term debts.
• The presence of director loans (£10,471) within current assets enhances liquidity but implies dependency on director funding, which may be less stable than third-party credit.
• No audit was performed, so cash flow details are limited; however, the micro-entity accounts suggest modest operational scale with one employee.
  The liquidity position is adequate for current liabilities but should be monitored closely to ensure operational cash flow sufficiency without reliance on director advances.

4. Monitoring Points:

• Track evolution of current liabilities versus current assets to detect any liquidity tightening.
• Monitor director loan balances and the ability to repay or convert these into equity or external financing.
• Watch operating profitability and cash flows once available, as reliance on director funding is not sustainable long term.
• Ensure timely filing of accounts and confirmation statements to maintain compliance.
• Observe any changes in business activity or industry conditions impacting consultancy and business support services (SIC 82990, 70229).