OCCUPATIONAL PERFORMANCE SOLUTIONS LTD

Executive Summary

OCCUPATIONAL PERFORMANCE SOLUTIONS LTD exhibits critical financial distress with negative net assets and working capital, signaling liquidity and solvency issues. Immediate action focusing on cash flow management, capital infusion, and operational review is essential to prevent further deterioration. Despite current challenges, compliance and governance practices provide a foundation for potential recovery.

OCCUPATIONAL PERFORMANCE SOLUTIONS LTD - Analysis Report

Company Number: 13711024

Analysis Date: 2025-07-20 17:39 UTC

Financial Health Assessment: OCCUPATIONAL PERFORMANCE SOLUTIONS LTD (as of 31 October 2024)

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1. Financial Health Score: D

Explanation:
The company shows critical signs of financial distress indicated by negative net current assets and net liabilities. While it remains active and compliant with filings, the balance sheet reflects a worrying position, warranting close attention and remedial action.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Current Assets	649	Very low liquidity; minimal short-term assets.
Current Liabilities	3,108	Liabilities due within a year exceed assets.
Net Current Assets	-2,459	Negative working capital; liquidity crunch.
Total Assets Less Current Liabilities	-2,459	Indicates overall negative net assets position.
Net Assets (Shareholders’ Funds)	-2,459	Company equity is negative, a symptom of distress.
Average Employees	0	No human resources employed yet.

Interpretation of Vital Signs:
The "vital signs" of this company show a critical liquidity problem, with current liabilities substantially outweighing current assets. This is analogous to a patient with a dangerously low blood pressure indicating insufficient resources to maintain normal operations. The net asset position is negative, meaning the company owes more than it owns—an "illness" in the financial structure often called insolvency on the balance sheet. The absence of employees suggests that the company is either dormant operationally or in a very early stage of activity without revenue generation.

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3. Diagnosis

Underlying Business Health:

• The company is relatively young (incorporated in 2021) and qualifies as a micro-entity, which limits the detail and scope of financial disclosures.
• The 2024 accounts reveal a sudden deterioration from a small positive net asset base (£2) in 2023 to a negative £2,459 in 2024. This shift suggests recent financial difficulties, possibly due to increased liabilities or operational costs without corresponding asset or cash inflows.
• Negative working capital signals that the company may struggle to meet short-term obligations, a symptom of cash flow distress.
• No employees and minimal current assets imply limited operational activity or revenue generation capacity, raising questions about sustainability without external financial support.
• Directors remain active and compliant with filing deadlines, which is a positive sign of governance but does not offset the financial strain evident.

Overall Diagnosis:
The company is showing symptoms of financial distress consistent with liquidity problems and potential solvency concerns. Although not yet in formal liquidation or administration, the balance sheet "vital signs" indicate it is in a precarious condition, requiring urgent attention to avoid worsening.

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4. Recommendations

To restore financial health and improve the prognosis, the company should consider the following steps:

• Immediate Cash Flow Management:
  Prioritize collecting receivables, reduce unnecessary expenses, and negotiate extended payment terms with creditors to alleviate short-term liquidity pressure.

• Capital Injection:
  Explore options for fresh equity investment or shareholder loans to restore positive net assets and increase working capital buffer.

• Operational Review:
  Assess current business model and cost structure. If the company is not yet trading, consider strategies to generate revenue quickly or temporarily pause activities to conserve cash.

• Financial Monitoring:
  Implement regular cash flow forecasting and budgeting to detect and address financial "symptoms" early.

• Professional Advice:
  Engage with an insolvency practitioner or financial advisor promptly to explore restructuring or turnaround options before the financial condition worsens.

• Governance and Transparency:
  Maintain timely and transparent communication with stakeholders to build confidence and support.

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