OARCO LIMITED

Executive Summary

Oarco Limited displays a solid and improving financial position with strong liquidity and growing equity, supporting its ability to meet credit obligations. The company’s micro size and limited fixed assets align with service industry norms, and no adverse filing or status issues exist. Credit approval is recommended with prudent monitoring to ensure continued financial health and operational cash flow stability.

OARCO LIMITED - Analysis Report

Company Number: 13549172

Analysis Date: 2025-07-20 13:58 UTC

1. Credit Opinion: APPROVE
   Oarco Limited demonstrates a solid financial position for its size and age. The company has shown consistent growth in net assets and working capital over the last two years. Its cash reserves have increased significantly, indicating improved liquidity and a stronger ability to meet short-term obligations. There are no overdue filings or company status concerns. The single director holds full ownership, suggesting clear control and accountability. However, the company is small and relatively new (incorporated 2021), so while credit approval is justified, terms should be conservative and monitored.

2. Financial Strength:
   The balance sheet as of 31 August 2024 shows net assets of £2,167, up from £549 in 2023, reflecting positive retained earnings growth. Fixed assets are minimal (£1 net book value) and fully depreciated, which is typical for a service-based business. Current assets, primarily cash (£2,603), comfortably exceed current liabilities (£437), yielding a strong net current asset position of £2,166. Shareholders’ funds have increased in line with net assets, reflecting internal capital generation rather than external funding. The company qualifies as a micro entity with modest scale but solid equity base for its category.

3. Cash Flow Assessment:
   The company’s cash position has improved substantially from £445 to £2,603, indicating strong liquidity. Current liabilities are minimal and relate mainly to corporation tax (£437). The net current assets position suggests positive working capital management, reducing risk of short-term cash flow pressure. The absence of debt and the build-up of cash reserves imply the company can comfortably service any modest credit facilities. However, the absence of detailed profit and loss data limits insight into operating cash flows, so ongoing monitoring is recommended.

4. Monitoring Points:

• Maintain close watch on cash flow trends, especially operating cash generation as the company grows.
• Monitor corporation tax liabilities and ensure timely settlement to avoid penalties.
• Track any changes in director ownership or control given the single-shareholder structure.
• Review any growth in fixed assets or liabilities that may impact financial flexibility.
• Watch for any delay in statutory filings or changes in company status.