Company Number: 13051877

Analysis Date: 2025-07-20 13:11 UTC

1. Risk Rating: LOW
   Oaktree Living Limited demonstrates solid financial improvements over recent years, maintains positive net assets and net current assets, and complies with filing requirements. There are no evident governance or regulatory red flags. The backing of a parent company further supports its solvency and operational continuity.

2. Key Concerns:

• Elevated current liabilities relative to cash balances, which may pressure short-term liquidity if not managed prudently.
• Significant amounts owed by and to group undertakings, requiring scrutiny for intercompany funding risks and dependency.
• Presence of hire purchase agreements secured against assets introduces financial leverage and obligations that must be monitored carefully.

3. Positive Indicators:

• Marked increase in net current assets from £80,588 in 2023 to £510,148 in 2024, indicating improved working capital management.
• Net assets growing from £130,178 in 2023 to £517,382 in 2024, reflecting strengthening equity position.
• Cash at bank increased substantially to £273,390, improving liquidity buffers.
• Compliance with filing deadlines and no overdue accounts or confirmation statements.
• Unqualified audit opinion indicating no material misstatements or concerns raised by auditors.
• Support from ultimate parent company, Hewitson Group Limited, which controls majority ownership and provides assurance on going concern.

4. Due Diligence Notes:

• Investigate the nature and terms of intercompany balances—both receivables and payables—to assess liquidity risk and potential dependency on group funding.
• Review hire purchase contract terms and repayment schedules to evaluate impact on cash flows and asset encumbrance.
• Analyze the company's cash flow statements and trade debtor aging for signs of delayed collections or cash conversion issues.
• Confirm that provisions for liabilities adequately cover any known or potential risks, given the increase noted in provisions.
• Assess management’s forecasts and assumptions underlying work-in-progress valuations and revenue recognition, as these are critical in construction businesses.
• Validate ongoing support commitments from the parent company to confirm the going concern assumption.