ROMEO INVESTMENTS LIMITED

Executive Summary

Romeo Investments Limited is a newly formed entity with significant financial weakness, including negative net assets and working capital deficits. The absence of operational history or revenue generation and minimal cash reserves highlight a high credit risk profile. Without capital strengthening or evidence of sustainable cash flow, credit facilities are not recommended at this time.

ROMEO INVESTMENTS LIMITED - Analysis Report

Company Number: 14519542

Analysis Date: 2025-07-29 16:58 UTC

1. Credit Opinion: DECLINE
   Romeo Investments Limited exhibits weak financial metrics that raise concerns about its ability to meet debt obligations. The company has net current liabilities of £523, indicating poor short-term liquidity and an inability to cover current liabilities with current assets. Negative shareholders’ funds of £523 further suggest an undercapitalised position. Given the company was incorporated recently (December 2022) and shows no turnover disclosed with negligible assets, it lacks a track record of operational cash generation. The director is the sole significant controller, which concentrates risk and limits financial oversight. Without evidence of sustainable revenue or capital injection plans, lending risk is high.

2. Financial Strength:
   The balance sheet shows total current assets of only £27 (mostly cash £26) against current liabilities of £550, yielding a net current liability position of £523. Net liabilities equal shareholders’ deficit of £523, reflecting accumulated losses or capital deficiency immediately after inception. The company holds no fixed assets. The financial structure is fragile, with liabilities exceeding assets and no reserves. The sole director’s loan of £1 and a small called-up share capital (£1) indicate minimal equity support. This structure provides little cushion to absorb operational or financial shocks.

3. Cash Flow Assessment:
   Cash at hand is minimal (£26), and debtor balances are negligible (£1), while creditors total £550 due within one year. This implies a liquidity shortfall and potential cash flow distress. There is no indication of cash inflows from operations or other sources to improve liquidity. The company’s current working capital is negative, signaling reliance on external funding or director support to meet short-term obligations. The absence of turnover or profit suggests the company is in a startup or pre-revenue phase with uncertain cash flow prospects.

4. Monitoring Points:

• Cash flow development and ability to cover short-term liabilities
• Revenue generation and profitability trends in upcoming periods
• Changes in working capital and net asset position
• Any capital injections or external financing arrangements
• Director conduct and governance oversight, given single controller concentration
• Timely compliance with filing deadlines to avoid regulatory penalties