O & D DEVELOPMENTS LTD

Executive Summary

O & D DEVELOPMENTS LTD is a micro-entity with minimal net assets and working capital, reflecting a fragile financial condition but not immediate distress. The company operates with very limited liquidity and equity, relying heavily on its director's control. To improve financial health, focused efforts on increasing working capital, building equity, and careful cash flow management are essential.

O & D DEVELOPMENTS LTD - Analysis Report

Company Number: 13792046

Analysis Date: 2025-07-20 17:26 UTC

Financial Health Assessment Report for O & D DEVELOPMENTS LTD

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1. Financial Health Score: D

Explanation:
The company shows minimal net assets and working capital, reflecting a fragile financial position. While it is not in immediate distress, the very low equity and current asset base relative to liabilities indicate vulnerability to cash flow shocks or unexpected expenses. This score suggests caution and attention to improving financial robustness.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	6,313	Small cash and short-term assets base; limited liquidity buffer.
Current Liabilities	5,964	Almost equal to current assets, leaving very little net working capital.
Net Current Assets	349	Positive but extremely narrow working capital margin; indicates tight liquidity.
Net Assets (Equity)	349	Very low shareholder funds; almost no cushion to absorb losses or fund growth.
Employees	0	No employees; operation is likely on a small scale or owner-run without payroll expense.
Account Category	Micro	Smallest scale business with minimal filing requirements; limited financial footprint.

Interpretation:
"O & D DEVELOPMENTS LTD" exhibits symptoms of a startup or very small-scale operation with limited financial resources. The "healthy cash flow" often ideal for business stability is barely present here. The company’s working capital—the lifeblood that keeps day-to-day operations running smoothly—is minimal and could easily turn negative if creditors demand payment or cash inflows slow down.

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3. Diagnosis

The financial snapshot suggests that O & D DEVELOPMENTS LTD is in a nascent or early-stage phase, showing signs typical of micro-entities with limited assets and little operational scale. The net current assets being just £349 is like a patient with a very weak pulse — the company is sustaining itself but vulnerable to financial shocks. The absence of employees points to a possibly owner-managed structure with low overheads.

The company is not showing any overt signs of distress such as negative net assets or overdue filings, which is positive. However, the "symptoms of fragility" are present: negligible equity and working capital mean the company has very little financial resilience. It heavily relies on the director’s personal control and possibly personal funds to maintain operation.

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4. Recommendations

To improve financial wellness and build a healthier financial profile, the following steps are advised:

• Increase Working Capital: Seek to boost liquid assets (cash or receivables) relative to short-term liabilities. This could be through improved cash collection, controlling expenses, or injecting additional funds.
• Build Equity Base: Consider ways to increase shareholder funds, such as capital injection or retained earnings growth, to create a stronger financial buffer.
• Monitor Cash Flow Closely: Maintain a tight grip on inflows and outflows to avoid liquidity crises. Cash flow forecasting is essential for such a lean operation.
• Consider Business Scale and Strategy: Evaluate if the current micro scale is sustainable or if business development initiatives are needed to increase turnover and profitability.
• Maintain Compliance: Continue timely filing of accounts and confirmation statements to avoid penalties and maintain good standing.
• Explore Cost Management: With zero employees, the company may already be lean, but continuous cost control and efficiency improvement remain important.

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