OASIS LAND AND NEW HOMES LIMITED

Executive Summary

Oasis Land And New Homes Limited demonstrates significant financial distress with negative net assets and working capital deficits as of the 2023 year-end, raising high solvency and liquidity risks. However, the company maintains compliance with filing requirements and has a majority controlling shareholder which may provide some operational flexibility. Further due diligence on liabilities, cash flows, and operational performance is recommended to clarify the sustainability of the business.

OASIS LAND AND NEW HOMES LIMITED - Analysis Report

Company Number: 12430709

Analysis Date: 2025-07-20 18:54 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency issues evidenced by persistent negative net assets and negative total assets less current liabilities in the latest financial year. The net current liabilities position and declining equity suggest financial distress.

2. Key Concerns:

• Solvency Risk: The net assets deteriorated from -£5,728 in 2022 to -£55,490 in 2023, with total liabilities exceeding assets, indicating the company is effectively insolvent on a balance sheet basis.
• Liquidity Concerns: Current liabilities (£195,766) exceed current assets (£170,083), resulting in negative net current assets (-£25,683) in 2023. This signals potential cash flow pressure to meet short-term obligations.
• Operational Stability: The company has maintained only two employees and limited fixed assets (£5,021), suggesting a lean operation but potentially limited capacity to generate sustainable revenues and improve financial health. The absence of a profit and loss account filing limits insight into operational profitability.

3. Positive Indicators:

• Compliance: The company is active and up to date with statutory filings, including accounts and confirmation statements, without overdue filings or penalties.
• Ownership Control: A majority shareholder and director (Steven Alan Harvey) holds 75-100% of shares and voting rights, potentially enabling swift decision-making and recapitalization if needed.
• Micro-entity Status: Filing under micro-entity provisions suggests simplified reporting and possibly lower administrative overhead.

4. Due Diligence Notes:

• Investigate the nature and terms of current liabilities and any contingent liabilities or off-balance sheet commitments that may impact liquidity further.
• Review internal management accounts or cash flow forecasts to assess ongoing operational cash generation and short-term liquidity.
• Clarify reasons for the large drop in net assets in 2023 and whether this reflects trading losses, asset write-downs, or other factors.
• Confirm any related party transactions or financing arrangements provided by the principal shareholder or directors.
• Assess potential risks related to the resigned director and any impact on governance or operational continuity.