OAK TREE SHUTTERS LTD

Executive Summary

OAK TREE SHUTTERS LTD, a newly established micro-entity, shows early signs of financial strain with negative equity and working capital deficits. While these challenges are common for startups, focused actions on liquidity management, capital strengthening, and operational scaling are critical to prevent deterioration and promote sustainable business health.

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Company Analysis

This analysis is opinion only and should not be interpreted as financial advice.

OAK TREE SHUTTERS LTD - Analysis Report

Company Number: 15084609

Analysis Date: 2025-07-29 19:37 UTC

Financial Health Assessment: OAK TREE SHUTTERS LTD
Date of Assessment: Post 31 August 2024 (latest accounts)


1. Financial Health Score: D

Explanation:
The company exhibits signs of financial distress primarily evidenced by negative shareholders’ funds and a working capital deficiency. While it is a young micro-entity with limited operational history, the current financial position signals challenges in liquidity and solvency. An early-stage company with negative equity is not uncommon, but vigilance and corrective measures are crucial to avoid worsening financial health.


2. Key Vital Signs

Metric Value (£) Interpretation
Current Assets 6,153 Represents cash, receivables, and other short-term assets. Modest but positive, showing some liquid resources.
Current Liabilities 13,502 Short-term debts and payables due within a year. Exceeds current assets, indicating potential liquidity stress.
Net Current Assets (Working Capital) (7,349) Negative working capital implies the company may struggle to cover short-term obligations with available liquid resources.
Shareholders’ Funds (Equity) (7,349) Negative equity signals accumulated losses or capital deficit; the company’s net asset base is below zero.
Average Employees 0 No employees yet, which keeps operational overheads low but may limit growth capacity.

Additional Notes:

  • The company is a micro-entity, newly incorporated in August 2023, so limited financial history is available.
  • No audit requirement due to small size; accounts prepared under micro-entity provisions.
  • Director and sole shareholder is Mr. Gareth Spencer Keyte, holding full control.

3. Diagnosis: What the Numbers Reveal

  • Liquidity Symptoms: The negative working capital suggests the company currently lacks sufficient cash or liquid assets to meet its short-term liabilities comfortably. This "cash flow distress" symptom could lead to payment delays or supplier issues if not addressed promptly.
  • Capital Structure Concerns: Negative shareholders’ funds indicate the company’s liabilities exceed its assets. This could be due to initial startup costs, losses incurred, or funding via loans rather than equity. This condition is akin to a patient with weakened foundational strength, requiring stabilization.
  • Operational Status: The absence of employees suggests either minimal operational activity or reliance on subcontractors/outsourcing. This might reduce fixed costs but also limits operational scalability.
  • Stage of Development: As a startup micro-entity, some financial strain is typical during the early phase of business establishment. However, the current position requires attention to prevent deterioration into insolvency.
  • Governance & Control: The single director and PSC model provides streamlined decision-making but also concentrates risk and responsibility on one individual.

4. Recommendations: Steps to Improve Financial Wellness

  • Enhance Liquidity Management:

    • Develop and maintain a detailed cash flow forecast to anticipate and manage cash shortages.
    • Negotiate extended payment terms with suppliers or seek short-term financing to bridge gaps.
  • Strengthen Capital Base:

    • Consider injecting additional equity funds from the shareholder or external investors to improve net assets and rebuild shareholder funds.
    • Explore grant funding or startup loans available for new businesses in the joinery/installation sector.
  • Cost Control and Revenue Generation:

    • Review all expenses carefully; minimize non-essential costs to preserve cash.
    • Accelerate sales efforts and marketing (leveraging the active website and social media presence) to increase revenue inflows.
  • Operational Planning:

    • Assess the feasibility of employing staff vs outsourcing to scale operations efficiently.
    • Implement robust credit control processes to ensure timely collection of receivables.
  • Regular Financial Monitoring:

    • Prepare monthly management accounts to monitor financial health proactively instead of waiting for year-end accounts.
    • Seek professional advice periodically to review financial strategy and compliance.

Medical Analogy Summary:
OAK TREE SHUTTERS LTD is currently exhibiting "symptoms of financial distress" similar to a patient with low blood pressure and weakened immune system—its liquidity is insufficient to meet immediate demands, and its capital reserves are depleted. Immediate intervention in cash flow management and capital infusion is needed to stabilize the company and support growth, akin to administering fluids and nutrients to restore health.



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