ROOMSONIC LIMITED

Risk Rating: HIGH The company exhibits severe balance sheet insolvency and critical liquidity constraints. Net liabilities stand at £88,007, and current liabilities exceed current assets by a significant margin, indicating a heavy reliance on creditor forbearance for ongoing operational viability.

Key Concerns: - Balance Sheet Insolvency: The company has negative net assets of £88,007 as of 31 December 2024. It has accumulated significant losses over its trading history, resulting in deeply negative shareholders' funds (£-88,009). This suggests the company cannot meet its obligations if they fall due immediately and is technically insolvent on a balance sheet basis. - Critical Liquidity Shortfall: Current liabilities (£122,284) vastly outweigh current assets (£38,577), resulting in net current liabilities of £83,707. Furthermore, the cash position is perilously low at £2,178, which is insufficient to cover the short-term creditor demands without external support or rapid inventory turnover. - Operational Viability: The accounts report an average of zero employees during the period. While a micro-entity may rely on directors, the combination of zero staff, a £15,000 inventory, and £21,399 in debtors raises questions about the operational capacity and scale of the business, as well as the realizability of these current assets.

Positive Indicators: - Improving Financial Trajectory: Despite the deeply negative net assets, the company's financial position improved year-over-year. Net liabilities reduced from £110,457 in 2023 to £88,007 in 2024, indicating a return to operating profitability or a reduction in accumulated losses during the period. - Regulatory Compliance: The company is up to date with its filing obligations at Companies House. Accounts and confirmation statements are not overdue, which demonstrates a baseline level of administrative governance and reduces the risk of regulatory penalties or compulsory strike-off. - Reduction in Long-Term Debt: Creditors falling due after more than one year decreased from £15,134 in 2023 to £5,017 in 2024, suggesting the company is successfully deleveraging its long-term obligations.

Due Diligence Notes: - Nature of Current Liabilities: It is imperative to determine the composition of the £122,284 in current liabilities. Specifically, establishing how much of this debt is owed to the directors (versus trade creditors or HMRC) is crucial. Director loans may be subordinated, reducing the immediate threat of insolvency proceedings. - Debtors Realizability: Debtors increased from £202 in 2023 to £21,399 in 2024. Given the lack of employees, an investigation into whether these debtors are related parties or genuine trade debtors is necessary, as well as an assessment of their collectability. - PSC Discrepancy: The People with Significant Control (PSC) register lists both "Mrs Danielle Gillieron" and "Ms Danielle Gillieron" as separate entries with 25-50% ownership and voting rights. This appears to be an administrative duplication or a failure to update the register following a change of name, which represents a compliance oversight that should be rectified.