ROWLING END LIMITED

Executive Summary

Rowling End Limited is currently not creditworthy due to its negative net asset position and substantial working capital deficit, indicating a high risk of default. The company’s financials reveal poor liquidity and limited operational scale, with no clear signs of imminent turnaround. Credit facilities are not recommended until significant financial improvements are demonstrated.

ROWLING END LIMITED - Analysis Report

Company Number: 14373321

Analysis Date: 2025-07-20 12:23 UTC

1. Credit Opinion: DECLINE
   Rowling End Limited displays a weak financial position with net liabilities of £121,528 as of 30 September 2024, worsening from the prior year. The company is in the micro category and is a newly incorporated small accommodation business. Current liabilities substantially exceed current assets, indicating significant liquidity risk and an inability to cover short-term obligations. The absence of audit and limited financial disclosures restrict deeper assessment, but the negative net asset base and persistent working capital deficit indicate elevated credit risk. Without signs of profitability or positive cash flow, the company is currently unable to reliably service debt or credit facilities.

2. Financial Strength:
   Fixed assets total £2.78 million, but the balance sheet is burdened by current liabilities of £3.03 million, leading to net current liabilities of £2.89 million. This results in overall net liabilities and negative shareholders’ funds. The company's equity position is eroded, reflecting accumulated losses or insufficient capital injection. The negative net assets position highlights weak financial resilience and vulnerability to adverse economic conditions. Being a micro-entity, it has modest operational scale and limited buffer to absorb shocks.

3. Cash Flow Assessment:
   Current assets of £132k, mainly short-term receivables or cash equivalents, are inadequate to meet imminent creditor demands of over £3 million. The large working capital deficit suggests strained liquidity and potential difficulties in meeting short-term obligations on time. The lack of detailed cash flow statements makes precise liquidity forecasting difficult, but the balance sheet structure implies heavy reliance on external financing or capital injections to maintain operations. The company’s ability to generate positive operational cash flows is unproven and uncertain.

4. Monitoring Points:

• Monitor quarterly or interim financial updates for improvement in working capital and profitability.
• Track changes in current liabilities and any restructuring or refinancing efforts.
• Observe any capital injections or shareholder loans that could strengthen equity.
• Review management actions addressing liquidity constraints and operational efficiency.
• Assess timely submission of financial returns and compliance with regulatory requirements.