OCKENDON HOUSE LIMITED

Executive Summary

Ockendon House Limited is a newly incorporated private company operating in the take-away food sector. Financial data for its first year shows significant negative working capital and net liabilities, highlighting a high risk of solvency and liquidity challenges. Although regulatory compliance is satisfactory, the company’s financial position necessitates careful scrutiny of its operational viability and funding arrangements before investment consideration.

OCKENDON HOUSE LIMITED - Analysis Report

Company Number: 14817175

Analysis Date: 2025-07-20 12:15 UTC

1. Risk Rating: HIGH
   The company exhibits significant financial distress as indicated by negative net current assets and shareholders’ funds within its first year of operation. The net current liabilities of £12,535 against minimal current assets and low cash reserves suggest a high risk of insolvency if immediate funding or operational improvements are not secured.

2. Key Concerns:

• Negative working capital: Current liabilities (£15,883) substantially exceed current assets (£3,348), indicating liquidity stress and potential difficulty in meeting short-term obligations.
• Net liabilities and shareholders' funds deficit (£12,535 negative): This reflects accumulated losses since incorporation and erosion of equity, signaling weak financial stability.
• Limited operational history and scale: Incorporated in April 2023 with only three employees and small asset base, the company’s business sustainability and growth prospects remain unproven at this stage.

3. Positive Indicators:

• Compliance with filing requirements: Accounts and confirmation statement are filed on time, indicating adherence to regulatory obligations.
• Clear ownership and control: Single director and 75-100% shareholder Mr. Guoying Su, which may facilitate quick decision-making.
• Defined accounting policies and standard reporting framework (FRS 102, small companies regime) used, enhancing transparency.

4. Due Diligence Notes:

• Investigate the company’s business plan and cash flow forecasts to assess how it intends to resolve current liquidity deficits and achieve profitability.
• Review details of creditors and payment terms, particularly the composition of the £15,883 current liabilities, to understand immediate financial pressures.
• Assess any external funding commitments or shareholder loans planned or received post-period end to support ongoing operations.
• Examine the director’s background and capacity to manage turnaround risks given sole control and ownership.
• Confirm absence of any contingent liabilities or pending regulatory issues not disclosed in accounts.