OANTADAB LTD

Executive Summary

Oantadab Ltd shows a sound financial condition characterized by positive net assets, strong liquidity, and growing retained earnings, reflecting a stable and profitable small civil engineering business. While financially healthy, the company would benefit from strengthening its capital base and asset utilization to support future growth and resilience. Maintaining good cash flow and disciplined financial management will be key to sustaining its solid financial health.

OANTADAB LTD - Analysis Report

Company Number: 12929216

Analysis Date: 2025-07-29 14:58 UTC

Financial Health Assessment for OANTADAB LTD

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1. Financial Health Score: B

Explanation:
Oantadab Ltd demonstrates solid financial stability with positive net assets and growing shareholders' funds over recent years. The company's liquidity position is healthy, showing good working capital and cash reserves relative to current liabilities. However, modest scale and limited equity base suggest room for improvement in capital structure and asset utilization. Overall, this reflects a financially sound but still developing business.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Net Assets	£8,697	Positive and growing net assets indicate the company’s assets exceed its liabilities, a healthy sign.
Shareholders’ Funds	£8,697	Equity has increased steadily from £68 in 2020 to nearly £9k in 2024, showing retained earnings growth.
Net Current Assets (Working Capital)	£6,685	Strong positive working capital ensures the company can cover short-term liabilities comfortably.
Cash on Hand	£9,462	Healthy cash reserves relative to liabilities suggests good liquidity and ability to meet immediate obligations.
Current Liabilities	£2,777	Manageable short-term debts, well covered by current assets and cash.
Fixed Assets	£2,012	Tangible fixed assets are modest, reflecting a lean asset base typical for a small civil engineering entity.
Profit & Loss Reserve	£8,696	Accumulated profits retained in the business, indicating ongoing business profitability.
Employee Count	2	Small workforce consistent with the company size and industry nature.

Additional Notes:

• The company’s accounting follows FRS 102 Section 1A, indicating compliance with UK small entity reporting standards.
• No audit required due to small company exemption, which is typical and appropriate here.
• The director is actively engaged, and no issues with overdue filings or company status.

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3. Diagnosis: Financial Condition Overview

The company exhibits classic signs of a "healthy patient" in financial terms. Key indicators such as positive net assets, increasing equity, and robust working capital suggest strong financial resilience. The rising cash balance is a "healthy pulse," denoting good liquidity management and ability to meet short-term obligations. The modest fixed asset base reflects a lean operational model appropriate for a small civil engineering projects business.

Symptoms of financial distress—such as negative working capital, declining retained earnings, or cash shortages—are absent. The incremental growth in shareholders’ funds signals profitability and sustainable operations, while stable liabilities indicate controlled risk exposure.

However, the relatively low absolute scale of funds and assets means the business remains vulnerable to external shocks or unexpected expenses. The company’s financial "immune system" could benefit from strengthening capital buffers and diversifying asset bases.

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4. Recommendations: Steps to Improve Financial Wellness

1. Enhance Capital Structure:
   Consider increasing equity either through retained earnings or additional capital injection to build a stronger financial cushion against business fluctuations and support growth.

2. Asset Utilization Review:
   Evaluate fixed asset usage and investment to ensure equipment and resources are optimally deployed to maximize operational efficiency and returns.

3. Cash Flow Management:
   Maintain the current strong liquidity position while monitoring cash flow patterns closely to sustain this healthy buffer, especially given the cyclical nature of construction projects.

4. Business Growth Planning:
   Explore strategic opportunities to expand operations or services which can leverage existing strengths and increase turnover, moving beyond micro/small scale thresholds for greater financial robustness.

5. Risk Management:
   Implement or review risk mitigation strategies including insurance, credit control, and contingency planning to safeguard against unforeseen liabilities or market downturns.

6. Financial Reporting and Control:
   Continue timely and compliant filing of accounts and returns to avoid regulatory risks and maintain stakeholder confidence.

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