Company Number: 13138159

Analysis Date: 2025-07-20 16:17 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Ocean Trail Limited shows a positive trajectory in net assets and fixed assets growth, indicating recent investment and expansion. However, the company has a working capital deficit in the latest year, with current liabilities exceeding current assets by £8,036. This signals short-term liquidity risk that requires monitoring. The related party transactions with Avensys Limited and the outstanding receivable of £84,404 due from that entity introduce some counterparty risk, depending on Avensys Limited’s financial health. Given these factors, credit approval is recommended with conditions to monitor liquidity closely and verify intercompany balances regularly.

2. Financial Strength:
   The balance sheet at 31 January 2024 shows net assets of £141,016, up from £53,511 the prior year, largely driven by a significant increase in fixed assets (£256k vs £52k). This suggests capital investment, possibly in vehicles or equipment relevant to their car and motor vehicle rental business. Long-term creditors have also increased (£99,417 vs £30,420), indicating some leveraging to finance growth. The equity base remains modest but has improved substantially since incorporation. Overall, the company is moderately capitalized with a growing asset base, but increased debt levels warrant ongoing assessment.

3. Cash Flow Assessment:
   Current liabilities of £135,821 slightly exceed current assets of £124,610, resulting in a negative net working capital position of £8,036 at the latest year-end. This implies potential short-term liquidity constraints that may impact the company’s ability to meet immediate obligations without additional funding or cash inflows. The increasing related party receivable (£84,404) may provide some liquidity support, but reliance on intercompany transactions should be cautiously viewed. The absence of audit and reliance on micro-entity accounting standards limit insight into detailed cash flow dynamics. Monitoring cash conversion cycles and debtor collection is advised.

4. Monitoring Points:

• Working capital and liquidity ratios to ensure improvement or stabilization of short-term financial health.
• Timely settlement and recoverability of intercompany balances with Avensys Limited.
• Debt servicing capacity given rising long-term liabilities.
• Revenue growth and profitability trends not disclosed here but critical for ongoing cash flow strength.
• Directors’ continued oversight and financial management effectiveness, given related party transactions.