OAKLANDS PARK ENGINEERING LIMITED

Executive Summary

Oaklands Park Engineering Limited is a micro-enterprise showing early signs of financial strain with negative working capital and shareholders’ funds at the latest year-end. While the business is small and controlled by two directors, its ability to meet short-term liabilities is currently limited. Credit can be conditionally approved, pending improvements in liquidity and equity position supported by director commitment or new business growth.

OAKLANDS PARK ENGINEERING LIMITED - Analysis Report

Company Number: 13888113

Analysis Date: 2025-07-20 16:39 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Oaklands Park Engineering Limited is a very recently established micro-entity (incorporated 2022) with limited financial history. The latest accounts show a deterioration from positive net current assets (£959) and shareholders’ funds (£959) in 2023 to a net current liability position (-£249) and negative equity at 2024 year-end. This signals some liquidity strain and a weakening balance sheet. However, with only one employee (likely one of the directors) and a simple capital structure controlled by two experienced individuals, the company may still have the capacity to stabilize operations. Credit approval should be conditional on further evidence of improved cash flow management or additional capital injections to restore net working capital.

2. Financial Strength:
   The balance sheet is weak as of 29 February 2024, with current liabilities (£2,538) exceeding current assets (£2,248) causing net current liabilities of £249. Shareholders’ funds moved from a positive £959 to a negative £249, indicating erosion of net assets within one year. The company holds no fixed assets and minimal working capital. This limited asset base restricts collateral availability. The decline in net assets reflects operating losses or withdrawals not offset by fresh equity. Overall, financial strength is fragile and warrants cautious monitoring.

3. Cash Flow Assessment:
   The company’s working capital has turned negative, which may imply difficulties meeting short-term obligations without additional financing. The micro-entity regime accounts omit a detailed profit and loss statement, but the balance sheet movement suggests cash outflows exceeded inflows during the latest year. With only one employee and low overheads, cash burn should be limited, yet the small cash and debtor base restrict operational flexibility. The directors’ personal commitment and capital contributions will be critical to maintaining liquidity.

4. Monitoring Points:

• Quarterly cash flow updates to verify working capital improvements
• Evidence of new contracts or revenue growth to restore profitability
• Capital injections or director loans to strengthen equity
• Timely filing of future accounts and confirmation statements (currently up to date)
• Close review of any changes in director or PSC control that might impact governance or financial support.