OGI NETWORKS LIMITED
Company number 03625793 · Monitor this company
This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.
Credit Analysis: OGI NETWORKS LIMITED
1. Credit Opinion: DECLINE
Reasoning: The company is technically balance sheet insolvent with net liabilities of £60,947 and net current liabilities of £382,482 as at March 2020. The dramatic deterioration from net assets of £476,970 to negative equity in a single year represents a £537,917 erosion of shareholder funds, indicating a severe trading loss or significant write-downs. The current ratio stands at approximately 0.53:1, meaning current liabilities exceed current assets by nearly £383k. Without evidence of parent company support or a verified recovery plan, the credit risk is unacceptable for unsecured facilities.
2. Financial Strength
Balance Sheet Health: Severely Weakened
| Metric | 2020 | 2019 | 2018 | 2016 | 2015 |
|---|---|---|---|---|---|
| Net Assets | (£60,947) | £476,970 | £694,669 | £988,294 | £751,024 |
| Shareholders' Funds | (£70,947) | £476,970 | £694,669 | £988,294 | £751,024 |
| Net Current Assets/(Liabilities) | (£382,482) | £94,183 | N/A | N/A | N/A |
Key concerns: - Negative equity position: The accumulated P&L reserve has swung from £466,970 credit to £70,947 debit, suggesting losses of approximately £537,917 in the year - Tangible assets of £421,429 provide some asset backing, but realisation values in an IT consultancy are uncertain - Investments collapsed from £200,000 to £23, suggesting disposal or impairment - Stock halved from £208,055 to £110,797, which may indicate write-downs or stock clearance
The five-year trend shows consistent deterioration in net assets from £988,294 in 2016 to negative territory, representing a total erosion of over £1 million in equity.
3. Cash Flow Assessment
Liquidity Position: Critical
| Metric | 2020 | 2019 |
|---|---|---|
| Cash | £64,216 | £78,653 |
| Current Assets | £434,090 | £522,991 |
| Current Liabilities | £816,572 | £617,174 |
| Current Ratio | 0.53:1 | 0.85:1 |
| Quick Ratio (excl. stock) | 0.40:1 | 0.45:1 |
Working Capital Deficit: £382,482 — the company cannot meet short-term obligations from current assets without external support.
Cash coverage: Cash of £64,216 against current liabilities of £816,572 provides less than 1 month's coverage, assuming liabilities fall due evenly.
Creditor position: Current liabilities increased by £199,398 (32%) year-on-year, suggesting either trading losses funded by creditors, deferred payments, or new short-term borrowing. The company is likely stretching payment terms with trade creditors.
Long-term debt increased from £44,672 to £100,000, indicating additional borrowing — potentially to fund operational losses.
Debtors increased modestly from £236,283 to £259,077, which could indicate slower collection or revenue recognition timing. Debtor days analysis would be helpful but P&L data is unavailable.
4. Monitoring Points
| Metric | Rationale | Threshold |
|---|---|---|
| Net current liabilities | Core solvency indicator | Must return to positive territory |
| Cash position | Liquidity survival metric | Monitor for further decline below £50k |
| Current liabilities trend | Indicates creditor pressure | Stabilisation or reduction required |
| P&L reserve movement | Tracks profitability trajectory | Must return to profit to rebuild equity |
| Parent company support | Spectrum Fibre Limited (>75% shareholder) | Formal comfort letter or guarantee required |
| Filing compliance | Accounts overdue status | Next accounts due 30/09/2026 — monitor timely filing |
| Employee headcount | Reduced from 32 to 28 | Further reductions may signal contraction |
| Long-term creditor position | Increased to £100k | Monitor for further leveraging |
Additional Risk Factors: - Company rebranded from NET SUPPORT UK LIMITED in May 2021 — unclear if this accompanied a business model change - Audit exemption as subsidiary means reduced transparency; no P&L filed - No director disqualification records found, which is positive - Group structure under Spectrum Fibre Limited may provide implicit support, but this is not formally documented