Company Number: 12615015

Analysis Date: 2025-07-19 12:15 UTC

1. Credit Opinion: DECLINE
   THEROCKETSCOLLECTIVE LTD presents significant financial weaknesses that impair confidence in its ability to meet debt obligations. The company has reported negative shareholders’ funds for two consecutive years, with net liabilities worsening to £6,481 as of May 2024 from a near break-even position in prior years. Current liabilities exceed current assets by £32,253, indicating a working capital deficit and liquidity strain. Furthermore, the company is classified as a micro entity in the performing arts sector, which can be volatile and cash-flow sensitive. No employees are recorded, and the company’s fixed assets have slightly declined. The absence of profit & loss data hinders full profitability assessment, but the balance sheet alone indicates ongoing financial stress.

2. Financial Strength: Weak
   The balance sheet shows a decline in net assets from £19,583 positive in 2021 to negative £6,481 in 2024. Current liabilities remain high relative to current assets, resulting in negative net current assets. The company also carries creditors due after one year (£10,811), contributing to overall net liabilities. The reduction of fixed assets and sharp decrease in current assets from £129,856 (2023) to £58,168 (2024) further reflect deteriorating financial health. The negative equity indicates accumulated losses or funding shortfalls, undermining the company’s capital base.

3. Cash Flow Assessment: Concerning
   Negative working capital and shrinking current assets suggest liquidity constraints. The company’s inability to generate sufficient short-term resources to cover liabilities may lead to payment delays or reliance on external financing. The absence of employees could imply minimal operational scale or outsourcing, but also limits internal cash-generating capacity. Without profit and loss data, precise cash flow analysis is limited, but balance sheet indicators point to cash flow pressure.

4. Monitoring Points:

• Monitor quarterly cash flow statements if available to track liquidity trends.
• Watch creditor payment terms and any defaults or delays.
• Observe any capital injections or restructuring efforts to shore up equity.
• Track future filings for profit & loss figures to assess operating performance.
• Review director conduct and any related party transactions for governance risks.