Company Number: 14761434

Analysis Date: 2025-07-19 12:14 UTC

1. Credit Opinion: DECLINE
   Romgo Limited shows a deteriorating financial position with net liabilities increasing from £2,550 positive net assets in 2024 to a net liability of £1,950 by 2025. The company’s current liabilities have grown substantially, and net current liabilities are deeply negative at £231k, indicating significant short-term liquidity stress. Given its micro-entity status and short trading history (incorporated 2023), there is limited financial track record to support recovery or growth prospects. The large negative working capital and net liabilities raise concerns about the company’s ability to meet its short-term obligations and service any credit facilities.

2. Financial Strength:
   The balance sheet reveals fixed assets increased modestly from £150,799 to £229,667, showing some investment in long-term assets. However, current assets are minimal (£2,832), and current liabilities have increased sharply to £233,884, resulting in a highly negative net current asset position (-£231,052). Total net assets have shifted from positive £2,550 in 2024 to negative £1,950 in 2025, indicating erosion of shareholders’ funds. The capital structure is weak with no retained earnings or reserves to buffer against financial shocks.

3. Cash Flow Assessment:
   The company’s working capital position is severely negative, indicating potential cash flow difficulties in meeting immediate liabilities. With current assets (largely cash and receivables) at only £2,832 against current liabilities of £233,884, liquidity risk is high. The business likely relies heavily on external financing or shareholder support to cover operational cash shortfalls. No information on cash flow from operations is provided, but the balance sheet suggests insufficient internal cash generation.

4. Monitoring Points:

• Track net current assets and liquidity ratios closely to detect worsening cash flow issues.
• Monitor changes in current liabilities and creditor payment terms.
• Assess the director’s ability and willingness to inject additional capital if needed due to 100% ownership.
• Review operational performance and asset utilization to determine if fixed assets are generating adequate returns.
• Watch for any overdue filings or adverse director conduct that might affect credit risk.