Company Number: 12384545

Analysis Date: 2025-07-20 18:36 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Ocean Care Services Ltd demonstrates improving financial health and growing net assets, which supports its ability to meet debt obligations. However, the company carries a significant level of current liabilities, notably a large director’s loan account, indicating reliance on related party funding. The company’s liquidity, while positive, is modest relative to liabilities. Approval is recommended with monitoring of liquidity and related party exposure to ensure ongoing repayment capacity.

2. Financial Strength:
   The company’s net assets have grown substantially from a negative position in 2019 to £19,337 at the end of 2023, showing a positive trajectory. Fixed assets increased notably in 2023 due to capital expenditures in motor vehicles and computer equipment, suggesting investment in operational capacity. Shareholders’ funds closely mirror net assets, indicating no hidden liabilities. However, current liabilities also increased sharply to £123,604 in 2023, largely driven by director’s loans (£59,561) and other creditors, which raises concerns about external debt reliance and financial structuring.

3. Cash Flow Assessment:
   Cash balances improved significantly to £120,662 in 2023 from £14,178 in 2022, reflecting better cash management or capital injections. Current assets exceed current liabilities by £7,058, indicating a positive working capital position. However, the large proportion of current liabilities tied to related party loans and tax obligations (corporation tax and social security) needs close scrutiny to confirm timely settlement capability. The average number of employees rose slightly to 39, indicating stable operational scale.

4. Monitoring Points:

• Monitor director’s loan account and related party transactions for increasing exposure or repayment delays.
• Track liquidity ratios closely, especially current ratio and quick ratio, to ensure working capital remains sufficient to cover short-term liabilities.
• Observe tax liabilities and ensure scheduled payments to avoid penalties or enforcement action.
• Review turnover and profitability trends when available to confirm sustainable cash flow supporting debt service.
• Keep watch on fixed asset utilization and depreciation policy to assess asset value preservation.