ROSCOM MEDIA LTD

Executive Summary

ROSCOM MEDIA LTD is currently financially solvent with positive equity and working capital but shows significant declines in liquidity and net assets over the past year, signaling early financial stress. Immediate focus on cash flow management and cost control is recommended to strengthen its financial position and sustain business health.

ROSCOM MEDIA LTD - Analysis Report

Company Number: 13801447

Analysis Date: 2025-07-29 17:10 UTC

Financial Health Assessment for ROSCOM MEDIA LTD

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1. Financial Health Score: C

Explanation:
ROSCOM MEDIA LTD exhibits a stable but declining financial position typical for a micro-entity in its early years. The company maintains positive net assets and working capital, indicating survival capability and operational continuity. However, a notable decrease in current assets and net assets signals caution. The score reflects a condition where the business is financially "breathing" but showing early signs of "stress" that require attention to avoid deterioration.

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2. Key Vital Signs

Metric	2024 Value (£)	2023 Value (£)	Interpretation
Fixed Assets	961	1,434	Small tangible asset base; slight reduction may indicate asset disposal or depreciation.
Current Assets	7,567	15,324	Current assets halved; indicates lower liquidity and potential challenges in short-term cash flow.
Current Liabilities	3,259	5,068	Current liabilities decreased, which is positive, but the ratio to assets remains significant.
Net Current Assets	4,308	10,256	Working capital reduced by more than half — a symptom of tightening liquidity.
Total Assets Less Current Liabilities	5,269	11,690	Net assets nearly halved, reflecting erosion of equity base.
Shareholders Funds	5,269	11,690	Equity capital reduced, possibly due to losses or withdrawals.
Average Employees	1	1	Very small workforce consistent with micro-entity status.

Vital Signs Interpretation:

• Healthy Cash Flow: The company retains positive working capital, which is a good sign of liquidity but the sharp decline is a red flag needing monitoring.
• Symptoms of Distress: Decreasing current assets and equity suggest the company may be using reserves to fund operations or facing reduced income streams.
• Stable Fixed Assets: Minimal changes in fixed assets imply no major capital investments or disposals recently.

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3. Diagnosis

ROSCOM MEDIA LTD is financially solvent with positive equity and working capital, akin to a patient who is stable but showing early symptoms of fatigue. The significant drop in current assets and net assets over the last year may stem from reduced cash inflows or increased operational expenses not matched by earnings — a potential sign of "internal stress" in the business model or market conditions.

The company’s micro size and single employee structure limit its operational complexity but also its ability to absorb financial shocks. Ownership and control are concentrated in one individual, which can be both a strength (quick decision-making) and a risk (lack of diverse governance).

No overdue filings or legal distress signs are present, which supports a baseline of regulatory compliance and operational continuity.

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4. Recommendations

To improve financial wellness and avoid further deterioration, consider the following:

• Cash Flow Management: Monitor cash inflows and outflows rigorously to prevent liquidity shortfalls. Implement tighter credit control if applicable.
• Cost Control: Review expenses carefully to identify and cut non-essential costs, helping to preserve working capital.
• Revenue Growth: Explore opportunities to diversify or increase income streams to rebuild asset base and equity.
• Capital Injection: If feasible, consider injecting additional equity or securing short-term financing to support operations during lean periods.
• Regular Financial Reviews: Conduct monthly financial "check-ups" to detect early signs of trouble and adjust strategies promptly.
• Governance: Maintain clear oversight despite single directorship, possibly engaging external advisory support for strategic decisions.

These steps will help ensure the company’s financial "vital signs" improve and that it remains "fit" for future challenges.

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