Company Number: 12406413

Analysis Date: 2025-07-20 18:57 UTC

Financial Health Score: D

The company exhibits clear signs of financial distress, with deteriorating liquidity and increasing net liabilities. While still operating, Oceanevo Limited’s financial fundamentals show symptoms that warrant urgent attention to avoid further decline.

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1. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Fixed Assets	8,611	Modest investment in long-term assets
Current Assets	42,349	Cash and short-term assets available
Current Liabilities	61,476	Debts due within one year exceed current assets
Net Current Assets (Working Capital)	-19,127	Negative; unhealthy cash flow position
Total Assets Less Current Liabilities	-10,516	Indicates liabilities exceed assets after short-term debts
Long-term Liabilities	14,237	Significant debt obligations beyond one year
Net Liabilities (Net Assets)	-25,253	Company is insolvent on a balance sheet basis
Share Capital	100	Minimal equity base
Average Employees	2	Small micro-entity scale

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2. Symptoms Analysis

• Negative Working Capital: The company’s current liabilities exceed its current assets by £19,127. This is akin to a patient running a fever—cash inflows are insufficient to cover short-term obligations, indicating liquidity distress.

• Increasing Net Liabilities: Net liabilities have worsened from -£9,399 in 2023 to -£25,253 in 2024. The company’s balance sheet is showing signs of insolvency, meaning total liabilities exceed total assets. This symptom suggests ongoing losses or accumulation of debt that is not being offset by asset growth or retained earnings.

• Rising Long-term Debt: Despite overall asset growth, long-term liabilities remain significant at £14,237, straining financial flexibility.

• Minimal Share Capital: With only £100 in share capital, the company has a very thin equity cushion, making it vulnerable to financial shocks.

• Small Scale Operations: With just 2 employees, the company’s operational scale is limited, which could impact growth potential but also limits overhead costs.

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3. Diagnosis

Oceanevo Limited is currently in a precarious financial state. The negative working capital and net liabilities indicate the company is under liquidity and solvency stress—comparable to a patient with declining vital signs. Despite small asset growth, liabilities have increased disproportionately, leading to a weakened balance sheet.

The company’s micro-entity status and small operational scale may limit its ability to raise substantial new equity or debt financing. The ongoing negative net assets position suggests sustained losses or insufficient profitability, possibly due to operational inefficiencies, pricing pressures, or market challenges.

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4. Prognosis

If the current financial trajectory continues without intervention, the company risks escalating insolvency and potential enforcement actions by creditors. However, if corrective actions are implemented swiftly, such as cost control, improving cash flow, restructuring debt, or injecting capital, there is potential for stabilization and gradual recovery.

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5. Recommendations

• Improve Liquidity: Prioritize converting receivables to cash faster and negotiate longer payment terms with suppliers to ease immediate cash pressure.

• Cost Control: Review operational expenses and overheads to identify savings, considering the very small team size for lean operations.

• Debt Restructuring: Engage creditors to restructure or refinance long-term and short-term debts to manageable levels.

• Capital Injection: Consider raising additional equity capital or seeking external investors to strengthen the balance sheet and provide working capital.

• Profitability Review: Analyze product lines and pricing strategies, especially in the retail and service sectors identified by SIC codes, to improve margins.

• Regular Financial Monitoring: Implement monthly cash flow forecasting and financial health checks to catch early warning signs and act promptly.

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