Company Number: 13157510

Analysis Date: 2025-07-20 16:28 UTC

1. Credit Opinion: CONDITIONAL APPROVAL. Roobal Consulting Limited is a small, active private limited company operating in the real estate management sector. The company demonstrates positive net assets and modest retained earnings. However, there has been a significant reduction in net current assets and shareholders’ funds in the latest financial year, notably due to large director-related debtor balances and dividend payments. The company has not been audited, and director advances are material and fluctuating, raising concerns about related party transactions and liquidity management. Approval is recommended subject to regular monitoring of cash flow, creditor payments, and confirmation that director balances remain manageable and are repaid as agreed.

2. Financial Strength: The balance sheet shows a decline in financial strength from £39,337 shareholders’ funds in 2023 to £13,015 in 2024. Fixed assets are minimal (£2,142), reflecting low capital investment. Current assets dropped markedly from £59,115 to £21,092, largely due to a reduction in debtors (which includes director’s current accounts). Current liabilities halved from £22,298 to £10,219, improving working capital but still resulting in a net current asset position of £10,873. The company maintains positive equity, but the sharp decrease in reserves and large director loan accounts indicate potential financial strain or shareholder distributions that could impact solvency if not carefully managed.

3. Cash Flow Assessment: Cash balances have declined from £18,920 to £8,398, reducing liquidity. While current liabilities are relatively modest, the sizeable director loan accounts (over £9,700 combined) classified under debtors are illiquid and dependent on directors’ repayment. The company’s working capital remains positive but weakened compared to prior years. Dividend payments (£40,000) in the year suggest cash outflow that may pressure operational liquidity. The absence of an income statement limits visibility on operational cash generation, so the ability to service debt and meet short-term obligations depends heavily on director advances and control of creditor payments.

4. Monitoring Points:

• Track director loan account balances and repayments closely to ensure these do not impair liquidity.
• Monitor cash flow and bank balances monthly to prevent short-term funding gaps.
• Watch for any increase in current liabilities or overdue creditors that could signal cash stress.
• Review dividend payments and shareholder distributions to confirm they align with sustainable profits and cash availability.
• Obtain interim accounts or management accounts for more frequent financial insight.
• Confirm ongoing compliance with filing deadlines and absence of director conduct issues.