OAKDENE AUTOMATIC TRANSMISSIONS LTD

Executive Summary

Oakdene Automatic Transmissions Ltd shows strong initial financial health with positive net assets and robust cash reserves typical of a well-capitalized start-up. While there are no signs of financial distress, the company should focus on building profitability and managing liabilities carefully as it grows. Maintaining vigilant cash flow management and enhancing operational tracking will be key to sustaining this healthy financial condition.

OAKDENE AUTOMATIC TRANSMISSIONS LTD - Analysis Report

Company Number: 15238254

Analysis Date: 2025-07-29 19:28 UTC

Financial Health Assessment for Oakdene Automatic Transmissions Ltd
Period under review: 26 October 2023 to 31 October 2024

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1. Financial Health Score: B

Explanation:
Oakdene Automatic Transmissions Ltd shows a stable financial condition for a newly incorporated company. The firm has positive net assets, healthy working capital, and strong cash reserves, which are vital signs of financial wellness. However, as a start-up with limited trading history, some caution is warranted until profitability and cash flow patterns are more established over time.

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2. Key Vital Signs

Vital Sign	Value	Interpretation
Net Assets	£68,320	Positive net assets indicate the company’s equity exceeds liabilities—a good sign of solvency.
Cash at Bank	£109,984	Strong cash reserves provide liquidity "heartbeats," ensuring the company can meet short-term obligations.
Net Current Assets	£42,373	Healthy working capital ("breathing room") showing sufficient liquid assets after covering short-term liabilities.
Current Liabilities	£75,394	These short-term debts are significant but well covered by current assets.
Fixed Assets	£26,730	Investment in long-term assets shows capital deployment for operational capacity, normal for a start-up.
Share Capital	£96	Minimal issued capital, typical for a newly formed private company.
Intangible Assets (Goodwill)	£6,000 (net)	Some investment in intangible assets reflects potential acquisition or proprietary technology, amortized prudently.
Employee Count	5	Small but operational workforce consistent with a Micro/Small enterprise.

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3. Diagnosis: Financial Condition Overview

Oakdene Automatic Transmissions Ltd is in the early stages of its lifecycle, having incorporated in late 2023. The balance sheet reveals a company with a "healthy heartbeat" — solid cash in hand and positive net assets indicate it is not currently under financial distress. The strong liquidity position (cash and net current assets) suggests the company can comfortably cover immediate obligations, a crucial symptom of financial stability.

However, as a start-up, the company has yet to establish a consistent profit and loss track record, with no profit and loss statement filed due to small company exemptions. The presence of goodwill and tangible fixed assets indicates early investment in business capabilities, but careful monitoring is needed to ensure these assets contribute to future earnings.

Current liabilities are sizeable relative to total assets but are well-managed given the strong current assets, suggesting good short-term financial management. The company's small issued share capital highlights reliance on retained earnings or other funding sources, which is typical for new private companies.

Overall, the company exhibits no symptoms of financial distress, such as overdrafts, negative equity, or overdue filings, but ongoing vigilance is necessary to monitor cash flow from operations and growth sustainability.

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4. Recommendations: Path to Enhanced Financial Wellness

• Cash Flow Monitoring: Maintain rigorous cash flow forecasts to ensure the "circulatory system" of the business remains strong as operations scale.
• Profitability Focus: Develop detailed profit and loss tracking as the company matures to diagnose operational performance "vital signs" beyond the balance sheet.
• Debt Management: Continue to monitor current liabilities closely to prevent short-term liquidity stress, especially as the company grows.
• Capital Structure Review: Consider increasing share capital or securing additional equity funding to strengthen the financial "immune system" and support expansion.
• Asset Utilization: Evaluate the contribution of fixed and intangible assets to revenue generation to ensure investments are yielding returns.
• Governance and Compliance: Keep up-to-date with filing obligations and statutory compliance to avoid penalties that could impact financial health.
• Business Development: Given the industry (vehicle maintenance and repair), focus on building customer base and operational efficiency to solidify revenue streams.

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