Company Number: 12547891

Analysis Date: 2025-07-20 18:15 UTC

1. Credit Opinion: APPROVE with monitoring.
   Roam Care Ltd is an active private limited company with demonstrated growth in net assets and shareholders funds over recent years. The company shows strong net current assets and a positive equity position, supported by significant share premium injections, indicating shareholder confidence and capital availability. However, the large increase in debtors and reduced cash balance in the latest year warrants close monitoring of receivables collection and liquidity management to ensure ongoing ability to meet short-term obligations.

2. Financial Strength:
   The company’s balance sheet reflects a solid improvement since inception in 2020. Shareholders’ funds have grown from £349,984 to £3.7M (including share premium), and net assets from negative levels in 2019 to £1.48M in 2023. Tangible fixed assets have increased to £101,986, showing investment in operational capability. Current assets increased to £1.53M mainly driven by debtors (£1.23M), while current liabilities remain modest at £144,338, resulting in a strong net working capital position of £1.38M. The company is classified as a small entity with limited share capital but considerable equity reserves.

3. Cash Flow Assessment:
   The company’s cash at bank dropped significantly from £912,100 in 2022 to £33,092 in 2023 despite increasing current assets, indicating cash tied up in debtors and stock (£262,525). The debtor balance surged markedly, which could strain liquidity if collection is delayed. Current liabilities remain manageable and no overdue filings or audit issues were noted. The company’s ability to generate cash internally or from new share issues appears adequate, but the low cash balance requires careful working capital management to avoid liquidity risks.

4. Monitoring Points:

• Receivables collection cycle and debtor aging profile to ensure timely cash inflows.
• Cash flow forecasts and liquidity buffers given the drop in cash despite asset growth.
• Impact of director changes in late 2024 on management and financial strategy.
• Continued shareholder support evidenced by share premium increases, and any potential dilution effects.
• Profitability trends and tax liabilities, noting a current corporation tax expense in 2023.