OFFSIDE DEVELOPMENTS LTD

Executive Summary

OFFSIDE DEVELOPMENTS LTD shows foundational financial stability but experienced a significant decline in net assets over the latest year, signaling a possible strategic capital restructuring or operational contraction. While currently solvent, the company needs to clarify this change and monitor cash flow prudently to maintain financial wellness. Strengthened financial transparency and strategic planning are advised to support future growth and stability.

OFFSIDE DEVELOPMENTS LTD - Analysis Report

Company Number: 13880983

Analysis Date: 2025-07-20 12:42 UTC

Financial Health Assessment: OFFSIDE DEVELOPMENTS LTD

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1. Financial Health Score: C

Explanation:
The company shows some foundational financial stability with positive net assets and shareholder funds, but there is a significant decline in asset base and working capital over the latest year. This indicates early symptoms of financial strain or a shift in operational scale. The limited data available (micro-entity level) constrains a thorough diagnosis, but caution is advised.

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2. Key Vital Signs

Metric	2023 (£)	2024 (£)	Interpretation
Current Assets	82,785	N/A	Strong liquid resources in 2023; data missing in 2024
Net Current Assets (Working Capital)	82,785	N/A	Healthy working capital in 2023; no current data 2024
Total Assets Less Current Liabilities	82,785	7,403	Sharp decline (approx. 91% drop) signals asset reduction or increased liabilities
Net Assets (Shareholders Funds)	82,785	7,403	Significant drop, indicating reduced equity
Called up Share Capital Not Paid	82,785	7,403	Decrease corresponds with net assets drop; possible capital repayment or write-off
Number of Employees	1	1	Stable but minimal workforce

• Vital Sign Interpretation: The company had a strong liquidity and net asset position in 2023 but experienced a drastic reduction in net assets and working capital by 2024. This suggests a "symptom of distress" such as asset disposal, reduction in capital, or operational contraction.

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3. Diagnosis

OFFSIDE DEVELOPMENTS LTD is a micro private limited company engaged in building project development. The company is very young (incorporated in 2022) with just one employee and a single director who is also the sole person with significant control.

The financials reveal a steep decline in net assets from £82,785 to £7,403 within one year. This drop may be due to capital reduction or other financial restructuring rather than trading losses, as no profit and loss data is available. The micro-entity exemption means limited disclosures, making it difficult to assess profitability or cash flow trends.

The "healthy cash flow" indicated by strong current assets in 2023 has been compromised or restructured by 2024; this could be a planned downsizing or partial return of capital to shareholders. The absence of liabilities beyond current liabilities and no off-balance sheet items is reassuring but does not offset the rapid shrinkage of the asset base.

Overall, the company exhibits early warning signs of financial contraction, possibly linked to strategic reorientation or capitalization changes rather than outright distress. However, the lack of detailed profit/loss and cash flow data limits the ability to confirm operational health fully.

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4. Recommendations

• Clarify Capital Movements: Investigate the cause of the sharp reduction in net assets and share capital not paid. If due to capital repayment or write-off, ensure this aligns with business plans and legal compliance.
• Enhance Financial Transparency: Consider moving beyond micro-entity reporting if growth occurs, to provide fuller insight into profitability and cash flows.
• Monitor Cash Flow Closely: Maintain a "healthy cash flow" to avoid liquidity risks. Cash flow forecasting and management should be prioritized.
• Cost Control and Revenue Generation: With only one employee, ensure that operational costs are tightly controlled and aligned with revenue generation.
• Strategic Planning: If the reduction in net assets is due to a change in business strategy, document this clearly in board minutes and future reports to reassure stakeholders.
• Regular Reviews: Conduct periodic financial health reviews to detect any worsening symptoms early and take corrective action.

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