F C OSENTON LTD

Executive Summary

F C Osenton Ltd is financially solvent but showing signs of liquidity stress, with declining net current assets and net worth. While the company remains stable, these symptoms warrant proactive cash flow management and cost control to prevent further deterioration. With appropriate interventions, the company can regain a healthier financial pulse and sustain its operational vitality.

F C OSENTON LTD - Analysis Report

Company Number: 13115503

Analysis Date: 2025-07-20 13:02 UTC

Financial Health Assessment of F C OSENTON LTD

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1. Financial Health Score: C

Explanation:
F C Osenton Ltd shows a stable but weakening financial condition. The company has positive net assets and working capital, indicating a generally healthy financial structure for a micro-entity. However, a noticeable decline in net current assets and total net assets over the last year signals emerging symptoms of distress that require careful monitoring and proactive management.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Fixed Assets	529	544	Stable but low investment in long-term assets.
Current Assets	7,114	12,278	Decline indicates reduced liquid resources.
Current Liabilities	3,996	3,928	Slight increase, manageable but needs attention.
Net Current Assets	3,118	8,350	Significant decrease, a symptom of cash flow strain.
Total Assets less CL	3,647	8,894	Drop indicates less buffer to cover liabilities.
Net Assets (Equity)	3,647	8,894	Reduced shareholder funds, a warning sign.
Share Capital	101	101	Minimal capital base, typical for a micro company.

• Working Capital (Net Current Assets): Healthy working capital is akin to a steady pulse; the sharp decline from £8,350 to £3,118 suggests the company’s short-term liquidity is weakening, reducing its ability to cover immediate debts comfortably.
• Net Assets: The fall from £8,894 to £3,647 is like a decline in overall vitality; net assets represent the company’s net worth and its financial cushion against shocks.
• Fixed Assets: Relatively consistent but very low, indicating the business is not heavily invested in property, plant, or equipment — typical for a property management focus but worth noting for growth potential.

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3. Diagnosis: Financial Condition

The company is currently solvent and operational with positive net assets and positive working capital. However, the significant reductions in both net current assets and net assets over the last financial year are symptoms of financial stress. This could stem from reduced cash inflows, increased expenses, or delayed receivables—common in property management where rent collections and property maintenance costs fluctuate.

The stable share capital and micro-entity status suggest a lean operation with low overheads. The presence of two directors, including one with an accounting background, is a positive governance sign for financial oversight.

However, the company's financial “vital signs” point to a declining liquidity position that, if it continues unchecked, could lead to cash flow difficulties. The decline in current assets (cash and equivalents) is especially concerning, as it limits the company’s ability to manage unexpected expenses or invest in growth opportunities.

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4. Recommendations: Improving Financial Wellness

• Boost Cash Flow: Focus on accelerating receivables and managing payables to improve working capital. Prompt rent collection and negotiating better payment terms with suppliers can ease liquidity pressure.
• Expense Control: Conduct a thorough review of operating expenses to identify cost-saving opportunities without compromising service quality.
• Financial Forecasting: Implement regular cash flow forecasting to anticipate potential shortfalls and plan accordingly.
• Capital Injection: Consider additional equity funding or short-term financing if liquidity issues worsen, to bolster the financial buffer.
• Asset Management: Evaluate fixed asset utilization and consider strategic investments that can enhance revenue streams or operational efficiency.
• Regular Financial Reviews: With an accountant director on board, ensure monthly or quarterly financial health checks to catch and address symptoms early.
• Stakeholder Communication: Maintain transparent communication with stakeholders about financial status and plans for stability and growth.

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