ROSETTA EDU LTD

Executive Summary

ROSETTA EDU LTD shows a precarious financial position characterized by negative net assets and substantial long-term creditor obligations, which elevates solvency and liquidity risks. While compliance with filings and a small workforce provide some operational stability, the company’s financial distress warrants thorough due diligence, especially regarding creditor terms and cash flow viability. Investors should proceed cautiously until these risks are mitigated or clarified.

ROSETTA EDU LTD - Analysis Report

Company Number: 14211260

Analysis Date: 2025-07-19 12:24 UTC

1. Risk Rating: HIGH
   ROSETTA EDU LTD exhibits significant solvency concerns due to negative net asset balances and high creditor obligations relative to current assets. The company's financial structure indicates distress, raising red flags for liquidity and operational sustainability.

2. Key Concerns:

• Negative Net Assets: The 2024 accounts show net assets of -£2,309, deteriorating from -£30 in 2023, signaling that liabilities exceed assets, which threatens solvency.
• High Creditors After One Year: Creditors falling due after more than one year increased sharply to £2,655 in 2024 from £151 in 2023, indicating growing long-term obligations that may be difficult to service.
• Minimal Current Assets and Cash: Current assets are extremely low (£346 in 2024), with no fixed assets, suggesting very limited liquidity to meet short-term liabilities or invest in operations.

3. Positive Indicators:

• No Overdue Filings: The company is current on statutory accounts and confirmation statements, indicating compliance with filing requirements.
• Small Employee Base: With only 2 employees, overhead costs may be low, potentially limiting cash burn.
• Active Website and Market Presence: The company maintains an active website and social media presence, indicating ongoing commercial activity in book publishing.

4. Due Diligence Notes:

• Clarify Nature of Long-Term Creditors: Investigate the composition and terms of the £2,655 creditors due after more than one year to assess repayment risks and potential restructuring needs.
• Cash Flow Analysis: Obtain management accounts or cash flow forecasts to evaluate short-term liquidity and whether the company can meet imminent obligations.
• Business Model Viability: Review revenue streams, client contracts, and market positioning to understand potential for turnaround or growth given current financial stress.
• Director and Governance Review: Confirm director experience and any prior conduct issues; assess internal controls given the financial position.