Company Number: 12883115

Analysis Date: 2025-07-29 12:41 UTC

1. Risk Rating: LOW to MEDIUM
   Roofing Innovations Ltd demonstrates a modest but positive net asset position and current net assets, indicating it can meet its short-term obligations. The company is up to date with filings and not in liquidation, which reduces immediate regulatory or operational risk. However, the relatively small scale and declining asset base warrant caution.

2. Key Concerns:

• Declining Net Assets: Net assets decreased from £33,746 in 2021 to £21,814 in 2025, suggesting some erosion of equity that could reflect operating losses or asset disposals.
• Reduced Current Assets: Current assets fell sharply from £127,130 in 2024 to £54,656 in 2025, reducing liquidity buffers and potentially signaling tighter cash flow conditions.
• Director Turnover: Recent resignation of one director (Darren Fraser) in May 2025 and changes in appointments may imply management instability or internal issues.

3. Positive Indicators:

• Positive Working Capital: The company maintains positive net current assets (£5,610 in 2025), indicating it currently can cover short-term liabilities.
• Compliance: No overdue accounts or confirmation statements, showing good regulatory compliance and governance discipline.
• Established Market Presence: Active website with contact details and marketing suggests ongoing operational activity and client engagement.

4. Due Diligence Notes:

• Investigate the cause of net asset decline and current asset reduction—review profit and loss accounts and cash flow statements to assess profitability and cash management.
• Assess the impact of director changes on management continuity and strategic direction. Clarify the role and influence of significant controller Darren Fraser, who resigned as director but holds substantial shareholding.
• Confirm the company’s order book, client base, and revenue trends to verify operational sustainability beyond balance sheet snapshots.