Company Number: 12449796

Analysis Date: 2025-07-29 20:31 UTC

1. Credit Opinion: APPROVE
   RO-SOMA LTD demonstrates a stable and improving financial position with positive net assets and net current assets that have increased year on year. The company maintains solid liquidity with cash balances growing from £46.8k to £67.9k in the latest financial year, indicating effective cash management. There is no evidence of overdue filings or adverse director conduct, and the company remains active with no insolvency proceedings. Given its financial trajectory and adequate working capital, the company appears capable of servicing short-term credit facilities and managing its obligations.

2. Financial Strength:
   The company’s balance sheet shows net assets of £24k as of 29 February 2024, up from £20k the prior year, reflecting retained earnings growth and a strengthening equity base. Fixed assets are minimal (£572), reflecting the nature of the business (business support and video production). Net current assets stand at £23.4k, providing a comfortable buffer over current liabilities (£58k). The increase in net current assets from £19.1k last year indicates improved short-term financial health. Share capital is nominal (£10), so equity strength depends on retained earnings.

3. Cash Flow Assessment:
   Cash at bank has increased significantly to £67.9k, supporting liquidity and the ability to meet immediate obligations. Debtors have decreased from £24.1k to £13.5k, which may indicate improved collection or lower sales on credit. Current liabilities have risen modestly but remain well covered by current assets. Overall, the company exhibits solid working capital management and sufficient cash reserves to service short-term debts.

4. Monitoring Points:

• Debtor Days: Monitor the collection period given the drop in debtors; ensure it does not affect cash flows adversely.
• Current Liabilities: Keep watch on any significant increases in short-term liabilities that could strain liquidity.
• Profitability Trends: Additional profit and loss data would be helpful to assess earnings consistency and debt servicing ability.
• Management Stability: Director changes appear minimal; ongoing oversight of management effectiveness is advisable.
• Industry Risks: The company operates in business support and video production, sectors sensitive to economic cycles and technology changes; market conditions should be monitored.