Company Number: 13828933

Analysis Date: 2025-07-20 13:57 UTC

Financial Health Assessment for OCCTA LIMITED

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1. Financial Health Score: D

Explanation:
OCCTA LIMITED shows clear signs of financial distress with persistent negative net assets and working capital deficits over the last two financial years. The company's liabilities significantly outweigh its current assets, indicating a weak liquidity position and potential solvency concerns. Given these symptoms, a grade D reflects a company struggling financially but still active, requiring urgent corrective measures.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Current Assets	278	1,060	Very low cash and short-term assets, insufficient for immediate obligations.
Current Liabilities	21,954	14,282	High short-term debts due, increasing year-on-year.
Net Current Assets (Working Capital)	-21,676	-13,222	Negative working capital, "symptom of distress" indicating inability to cover short-term debts.
Net Assets (Shareholders’ Funds)	-21,676	-13,222	Negative equity, indicating total liabilities exceed assets; "financial anemia" in balance sheet health.
Employees (Average)	1	1	Micro-entity with minimal staffing; limited operational scale.

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3. Diagnosis

OCCTA LIMITED is currently in a financially unhealthy state. The company exhibits the classic "symptoms of distress" through:

• Negative net assets and working capital deficits persistently worsening over two years. This indicates that the company’s liabilities exceed its assets by a significant margin and it lacks sufficient liquid resources to meet short-term obligations.
• Deteriorating liquidity as shown by very low current assets against a growing pool of current liabilities. This weak cash position raises red flags about the company’s ability to fund day-to-day operations without external support.
• Micro-entity scale limits its access to capital markets or large credit facilities, increasing vulnerability.
• The company was incorporated in 2022 and has not filed profit & loss accounts, suggesting it may be in the early development phase, but the financial "vital signs" point to operational and financial strain.
• The director and majority shareholder (Mr Shailesh Tiwari) holds full control, which can be positive for swift decision-making but also concentrates risk.

Overall, the company is in a precarious financial condition. Without intervention, the prognosis could trend towards insolvency or require restructuring.

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4. Recommendations

To improve OCCTA LIMITED’s financial wellness and stabilize its "financial heartbeat," the following actions are advised:

• Immediate liquidity management:

  • Explore short-term financing options (overdraft, invoice financing) to address the working capital deficit and avoid liquidity crises.
  • Negotiate extended payment terms with creditors to ease short-term cash outflows.

• Cost control and revenue enhancement:

  • Critically review operating expenses to reduce unnecessary costs.
  • Accelerate sales efforts or diversify revenue streams to improve cash inflows.

• Capital injection:

  • Consider shareholder loans or capital injection from the owner or third parties to restore positive net assets.

• Financial monitoring:

  • Implement rigorous cash flow forecasting to anticipate and manage liquidity needs.
  • Regularly update financial statements and consider engaging a financial advisor to guide restructuring.

• Strategic review:

  • Assess the viability of the current business model and product offerings in the telecommunications sector to ensure market fit.
  • Explore partnerships or mergers to strengthen the financial base.

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