Company Number: 15085183

Analysis Date: 2025-07-29 16:50 UTC

Financial Health Assessment of Oakland Park Limited as of 31 March 2024

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1. Financial Health Score: C

Explanation:
Oakland Park Limited is in its first financial year of operation and shows a mixed financial profile. While the company has strong tangible fixed assets and significant shareholder capital (£500,000), it is currently experiencing working capital stress with net current liabilities of £252,855. The company’s cash reserves are moderate (£190,082) but are overshadowed by high short-term liabilities (£623,902). The financial structure is heavily leveraged with secured borrowings and related party loans, indicating cautious optimism but potential liquidity concerns. This results in a cautious grade of C reflecting a company with foundational assets but some symptoms of financial strain.

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2. Key Vital Signs and Interpretation

Metric	Value (£)	Interpretation
Fixed Assets (Tangible)	971,319	Strong investment in long-term assets; reflects foundational capital expenditure and capacity.
Current Assets	371,047	Includes cash (£190,082), debtors (£102,091), and stock (£78,874); moderate liquidity base.
Current Liabilities	623,902	High short-term obligations, including secured borrowings and trade creditors; liquidity risk.
Net Current Assets (Working Capital)	-252,855	Negative working capital signals short-term liquidity pressure and potential cash flow issues.
Non-current Liabilities	300,000	Secured borrowing due after one year; manageable but adds to leverage.
Net Assets (Equity)	418,464	Positive net asset base supported by share capital and some retained losses.
Share Capital	500,000	Strong equity injection from shareholders, providing a cushion for operations.
Profit & Loss Reserve	(81,536)	Accumulated deficit reflecting early stage losses or initial expenses.
Cash Position	190,082	Reasonable cash balance but must cover high current liabilities soon.
Loan Facility	£1.4m total, £400k drawn	Loan secured with a floating charge at 12% interest; the debt servicing cost will pressure cash flow.

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3. Diagnosis: What the Financial Data Reveals About Business Health

• Healthy Foundations but Early-stage Stress: The company has invested heavily in tangible fixed assets (£971k) which is a positive sign of long-term capability. The strong equity base (£500k share capital) shows confident shareholder support.

• Symptoms of Liquidity Strain: Negative net current assets indicate the company owes more in short-term liabilities than it holds in liquid or near-liquid assets. This is a classic symptom of potential cash flow problems which could impact day-to-day operations if not managed carefully.

• Leverage and Debt Burden: The company’s use of secured loans and a related-party loan with a high-interest rate (12%) increases financial risk. Interest payments and principal repayments will need to be carefully budgeted.

• No Audit Requirement: As a small company in its first year, the accounts are unaudited, which means external assurance is limited. Stakeholders should be mindful of this when assessing reliability.

• Early Losses: The negative profit and loss reserve is typical in the initial phase of business but requires monitoring to ensure losses do not deepen.

• Management and Control: The directors have significant control and experience, which supports operational governance, but focus on financial discipline is needed.

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4. Recommendations: Actions to Improve Financial Wellness

• Improve Working Capital Management:

  • Negotiate extended payment terms with suppliers to reduce current liabilities pressure.
  • Accelerate debtor collections and review stock management to improve liquidity.

• Cash Flow Forecasting and Monitoring:

  • Prepare rolling cash flow projections to anticipate and mitigate liquidity crunches.
  • Manage loan drawdowns prudently to avoid unnecessary interest expenses.

• Debt Restructuring and Cost Control:

  • Explore refinancing options to reduce the high-interest rate on the related-party loan.
  • Consider partial repayment or restructuring to spread out repayment burden and reduce current liabilities.

• Profitability Plan:

  • Focus on revenue-generating activities aligned with SIC codes (amusement and animal raising) to improve operational cash inflows.
  • Control overhead costs and monitor early loss trends closely to move towards profitability.

• Stakeholder Communication:

  • Maintain transparent reporting with shareholders and lenders about financial status and recovery plans.
  • Consider professional advisory support for financial planning and restructuring.

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Medical Analogy Summary:
Oakland Park Limited shows strong "bones" (fixed assets and capital) but is currently exhibiting "symptoms of distress" in its liquidity "circulatory system" due to negative working capital and high short-term debts. The company's prognosis depends on its ability to manage cash flow effectively and reduce debt burden to avoid "financial fatigue" or potential insolvency risks.

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