Company Number: 13815798

Analysis Date: 2025-07-29 14:26 UTC

1. Risk Rating: MEDIUM
   Justification: Roth Turbines Limited has demonstrated a significant positive turnaround in financial position in the latest financial year (2024) compared to previous years where it showed net liabilities. The company now reports strong net assets largely due to substantial intangible and tangible asset additions. However, the business is relatively new (incorporated late 2021), with limited operating history and still low cash balances, which pose some risk. The relatively small share capital and recent director appointments also warrant caution.

2. Key Concerns:

• Historical Losses and Negative Equity: The company reported net liabilities and negative shareholders' funds in the first three years (2021–2023), indicating early operational losses or startup phase risks.
• Low Cash Reserves: Despite improved net current assets, cash on hand remains low (£8,299), which could pressure liquidity if cash flows are not managed closely.
• Concentration of Control: Roth Group Limited owns 75–100% of shares and voting rights, controlling board appointments, which may limit minority investor influence and raises governance concentration risk.

3. Positive Indicators:

• Strong Asset Base in 2024: Significant intangible (£1.08m) and tangible assets (£176k) acquired in 2024 underpin the company’s value and potential to generate future revenues.
• Improved Working Capital: Net current assets improved substantially to £336k from negative in prior years, reflecting better short-term financial health.
• Compliance and Timely Filings: No overdue accounts or confirmation statements suggest good regulatory compliance and governance discipline.
• Experienced Directors: All current directors were appointed recently but have valid professional backgrounds and no disqualification records reported.

4. Due Diligence Notes:

• Verify the nature and valuation basis of intangible assets (e.g., patents, licenses) to confirm their recoverability and reasonableness of amortisation policies.
• Review cash flow forecasts and working capital management to assess liquidity sustainability given low cash balances.
• Investigate the relationship and financial support from Roth Group Limited and Swift Technology Group Limited to understand group dynamics and financial backing.
• Assess business model, contracts, and pipeline to evaluate operational sustainability beyond asset base, given limited trading history.
• Confirm absence of any contingent liabilities or off-balance sheet risks not disclosed in abridged accounts.